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L'importance des incitations financières dans l'obtention d'un emploi est-elle surestimée ?

Author

Listed:
  • Cyrille Hagneré
  • Nathalie Picard
  • Alain Trannoy
  • Karine Van der Straeten

Abstract

Six models are estimated, incorporating three possible explanatory factors for non-employment which may be substitutable or complementary. They are the weakness of financial incentives, lower productivity than the cost of the minimum wage and labour market shortcomings. The study of participatory behaviour uses a microsimulation model based on the 1998 Taxable Income Survey, while the impact of minimum wage censorship is estimated using 1997 and 1998 Employment Survey data. The study, conducted on one-adult households, shows that the best fit is obtained by models which assume a strict complementarity between minimum wage censorship and participation. A 10% increase, through transfers, in the available income of a female worker earning the minimum wage would induce a 10% increase in the probability of employment.

Suggested Citation

  • Cyrille Hagneré & Nathalie Picard & Alain Trannoy & Karine Van der Straeten, 2003. "L'importance des incitations financières dans l'obtention d'un emploi est-elle surestimée ?," Economie & Prévision, La Documentation Française, vol. 0(4), pages 49-78.
    • Handle: RePEc:cai:ecoldc:ecop_160_0049
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    1. is not listed on IDEAS
    2. repec:spo:wpmain:info:hdl:2441/5270 is not listed on IDEAS
    3. Damien Échevin, 2003. "L'individualisation de l'impôt sur le revenu : équitable ou pas ?," Economie & Prévision, La Documentation Française, vol. 0(4), pages 149-165.
    4. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.

    More about this item

    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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