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How to improve back to work incentives? [Comment améliorer les gains du retour à l'emploi?]

Author

Listed:
  • Yannick L'Horty

    (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne)

  • Jean-François Ouvrard

Abstract

We analyse back to work incentives taking into account intertemporal gains and worker mobility between jobs. Theoretically, we show that these incentives vary depending on the difference between replacement benefits and bad jobs wages. They are also sensible to the accessibility and stability of good jobs and to the wage inequality between good and bad jobs. The fact is all these factors are diverse among social groups. Facing this kind of diversity, we present an illustrative simulation based on Labor Force French Survey, which suggests that mixing policies is the best way to improve back to work incentives. For instance, one have to make jobs more stable to improve employment gains for unskilled young men, but it is better to improve good job accessibility for the skilled young women and for unskilled adults and we need to use all the chanels for the young unskilled women.

Suggested Citation

  • Yannick L'Horty & Jean-François Ouvrard, 2006. "How to improve back to work incentives? [Comment améliorer les gains du retour à l'emploi?]," Post-Print hal-02877991, HAL.
    • Handle: RePEc:hal:journl:hal-02877991
    DOI: 10.3917/reco.573.0461
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