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Introduction – Socio-Fiscal Incentives to Work: Taking Stock and New Research

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  • Olivier Bargain

Abstract

[eng] Income taxation and means-tested transfers have considerably changed in France over the past fifteen years, with potentially strong implications for work incentives and inequality. In the upper half of the distribution, the rise of the CSG – in absolute terms and relatively to the progressive income tax – is increasingly leading our system towards a flat tax profile. At the bottom, high effective marginal tax rates have shifted – their distribution has changed from a U-shape to a tilde-shape – due to the expansion of in-work transfers (PPE, RSA activité, then Prime d’Activité). The upcoming reform of unemployment benefits will also change the incentives to return to work. This introduction presents three original articles that characterize these changes and their implications, and attempts to assess their contributions in the light of current policy debates and the evolution of our empirical knowledge on the issue of work incentives.

Suggested Citation

  • Olivier Bargain, 2018. "Introduction – Socio-Fiscal Incentives to Work: Taking Stock and New Research," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 503-504, pages 5-12.
    • Handle: RePEc:nse:ecosta:ecostat_2018_503-504_1
    DOI: https://doi.org/10.24187/ecostat.2018.503d.1954
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    References listed on IDEAS

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    1. James Banks & Richard Disney & Alan Duncan & John Van Reenen, 2005. "The Internationalisation of Public Welfare Policy," Economic Journal, Royal Economic Society, vol. 115(502), pages 62-81, March.
    2. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2014. "Tax-Benefit Revealed Social Preferences in Europe and the US," Annals of Economics and Statistics, GENES, issue 113-114, pages 257-289.
    3. Lundberg, Jacob & Norell, John, 2018. "Taxes, benefits and labour force participation: A survey of the quasi-experimental literature," Ratio Working Papers 313, The Ratio Institute.
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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