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Public Policy and Unemployment in Interwar France: An Empirical Approach

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Author Info
Tony Syme
Abstract

This paper introduces an empirical model of the French interwar labour market that is comparable to models developed for the British labour market for this period, yet incorporates specific extensions in order to capture the peculiarities of the French case. The result is a model that can very accurately stimulate the movement of unemployment in the 1920s and 1930s and this is used to run a series of counterfactual simulations to estimate the labour market effects of various public policies adopted at the time. Of particular note is the result that the repatriation drive of the early 1930s had no significant effect on the size of foreign labour force by 1936 and that the decision to remain on the Gold Standard until 1936 raised unemployment each year by more than primary policies introduced to combat unemployment - public works and repatriation of foreign workers - reduced it.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 055.

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Date of creation: 2000
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Handle: RePEc:oxf:wpaper:055

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Related research
Keywords: France unemployment gold standard repatriation public works 1930s Popular Front

Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
N34 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - Europe: 1913-

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  1. Layard, Richard & Nickell, Stephen, 1986. "Unemployment in Britain," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S121-69, Supplemen. [Downloadable!] (restricted)
  2. Dimsdale, Nicholas H & Horsewood, Nicholas, 1995. "Fiscal Policy and Employment in Interwar Britain: Some Evidence from a New Model," Oxford Economic Papers, Oxford University Press, vol. 47(3), pages 369-96, July. [Downloadable!] (restricted)
  3. Lindbeck, Assar & Snower, Dennis J, 1990. " Demand- and Supply-Side Policies and Unemployment: Policy Implications of the Insider-Outsider Approach," Scandinavian Journal of Economics, Blackwell Publishing, vol. 92(2), pages 279-305.
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  4. Broadberry, S N, 1986. "Aggregate Supply in Interwar Britain," Economic Journal, Royal Economic Society, vol. 96(382), pages 467-81, June. [Downloadable!] (restricted)
  5. Kokkelenberg, Edward C, 1983. "Interrelated Factor Demands Revisited," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 342-47, May. [Downloadable!] (restricted)
  6. Benjamin, Daniel K & Kochin, Levis A, 1979. "Searching for an Explanation of Unemployment in Interwar Britain," Journal of Political Economy, University of Chicago Press, vol. 87(3), pages 441-78, June. [Downloadable!] (restricted)
  7. Bernanke, Ben S, 1986. "Employment, Hours, and Earnings in the Depression: An Analysis of EightManufacturing Industries," American Economic Review, American Economic Association, vol. 76(1), pages 82-l09, March. [Downloadable!] (restricted)
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  8. Hatton, T J, 1988. "A Quarterly Model of the Labour Market in Interwar Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(1), pages 1-25, February.
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  9. Nadiri, M Ishaq & Rosen, Sherwin, 1969. "Interrelated Factor Demand Functions," American Economic Review, American Economic Association, vol. 59(4), pages 457-71, Part I Se. [Downloadable!] (restricted)
  10. Beenstock, Michael & Warburton, Peter J, 1986. "The Market for Labour in Interwar Britain," CEPR Discussion Papers 105, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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