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Emploi : une analyse critique des politiques malthusiennes

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  • David Spector

Abstract

This article builds and calibrates a model of the French labour market in order to compare the effect of the various economic policy measures: Malthusian measures to withdraw individuals from the working population and measures to lower charges. The model stresses the importance of the heterogeneousness of individual productivity near the minimum wage. Estimation of the elasticity of low wages to the unemployment rate and the use of existing empirical data demonstrate that productivity is very heterogeneous at this level, which makes Malthusian measures relatively ineffective: one hundred withdrawals from the labour market free up at most forty jobs. By contrast, reducing the cost of unskilled labour is effective in the long term and may even have a negative or zero cost for public finance.

Suggested Citation

  • David Spector, 2001. "Emploi : une analyse critique des politiques malthusiennes," Economie & Prévision, La Documentation Française, vol. 0(4), pages 13-31.
    • Handle: RePEc:cai:ecoldc:ecop_150_0013
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