The role of tasks, contractual arrangements, and job composition in explaining the dynamics of wage inequality: Evidence from France

The paper examines wage differentials in France over time, analysing the impact of various covariates at different points on the wage distribution scale. We simultaneously assess multiple potential explanatory factors, including the tasks performed by workers, organizational methods, contractual arrangements, and individual characteristics. To accomplish this, we utilise a unique worker-level database, the French Enquête Complémentaire Emploi: Conditions de travail, covering the period from 2005 to 2016. Our primary findings support the hypothesis that shifts in wage differentials across the wage distribution can be predominantly attributed to contractual and work arrangements, as opposed to tasks and organizational practices. Job composition and contractual arrangements emerge as pivotal factors in understanding the determinants and patterns of wage inequality among workers. In contrast, tasks' content and organizational methods appear to play a relatively minor role. In sum, the evidence presented in this article suggests that the RBTC hypothesis may not be generalised across countries. It underscores the importance of considering structural and institutional factors, particularly in countries characterised by highly regulated labour markets and a strong tradition of industrial relations.