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All Displaced Workers Are Not Created Equal: The Political Economy of Worker Adjustment Assistance in France

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  • Gray, David M

Abstract

This paper analyzes the political economy of adjustment assistance benefits paid to selected groups of displaced workers. Several competing theories of income redistribution are discussed, including social insurance motives and political support motives, a dichotomy laid out by Hillman (1988) and Baldwin (1989). The Becker (1983) hypothesis concerning the role of deadweight loss factors is addressed. Based on descriptive and empirical analysis of an original French data set, it is argued that the politico-economic characteristics that render an industry and its workforce more likely to receive these benefits are those associated with the Olson (1982) model of the logic of collective action. Some evidence is found, however, that social insurance factors play a partial role. The pattern of income redistribution does not appear to be strongly influenced by the deadweight loss factors that Becker stresses. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Gray, David M, 1995. "All Displaced Workers Are Not Created Equal: The Political Economy of Worker Adjustment Assistance in France," Public Choice, Springer, vol. 85(3-4), pages 313-333, December.
    • Handle: RePEc:kap:pubcho:v:85:y:1995:i:3-4:p:313-33
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    Cited by:

    1. David M. Gray, 2002. "Early Retirement Programs and Wage Restraint: Empirical Evidence from France," ILR Review, Cornell University, ILR School, vol. 55(3), pages 512-532, April.
    2. Magee, Christopher, 2001. "Administered protection for workers: an analysis of the trade adjustment assistance program," Journal of International Economics, Elsevier, vol. 53(1), pages 105-125, February.
    3. Bukowski, Maciej & Lewandowski, Piotr & Koloch, Grzegorz & Baranowska, Anna & Magda, Iga & Szydlowski, Arkadiusz & Bober, Magda & Bieliński, Jacek & Zawistowski, Julian & Sarzalska, Malgorzata, 2008. "Employment in Poland 2007: Security on flexible labour market," MPRA Paper 14284, University Library of Munich, Germany.
    4. Siebert, W. Stanley, 2006. "Labour Market Regulation in the EU-15: Causes and Consequences – A Survey," IZA Discussion Papers 2430, Institute of Labor Economics (IZA).
    5. Gray, David M., 2001. "An application of the 'insider-outsider' hypothesis: categorical adjustment assistance programs in France," European Journal of Political Economy, Elsevier, vol. 17(1), pages 139-156, March.
    6. Gray, David, 1996. "How unemployable are displaced manufacturing workers?: An analysis of adjustment costs and supplemental adjustment assistance benefits in France," European Journal of Political Economy, Elsevier, vol. 12(4), pages 685-708, December.

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