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Financial Incentives to Work in France between 1998 and 2014
[Les incitations monétaires au travail en France entre 1998 et 2014]

Author

Listed:
  • Michaël Sicsic

    (INSEE - Institut national de la statistique et des études économiques (INSEE), CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas, Université Paris-Panthéon-Assas)

Abstract

This study looks at incentives to work in France, measured using effective marginal tax rates (at the intensive margin) and effective participation tax rates (at the extensive margin). These show the proportion of an increase in earned income captured by the tax_benefit system, either because the taxes increase or because the benefits decrease. They are calculated using microsimulation based on the Insee survey Revenus fiscaux et sociaux. Between 1998 and 2014, incentives to work at the intensive margin rose for very low incomes, and then decrease as incomes rise. Incentives at the extensive margin rose in the first third of the distribution. The profile of the marginal rates changed from a U to a tilde shape. Incentives to work are lower for single people than for couples, but there is very little difference in incentive to work between men and women, except at the top of the distribution to the detriment of married women.

Suggested Citation

  • Michaël Sicsic, 2018. "Financial Incentives to Work in France between 1998 and 2014 [Les incitations monétaires au travail en France entre 1998 et 2014]," Post-Print hal-05494509, HAL.
    • Handle: RePEc:hal:journl:hal-05494509
    DOI: 10.24187/ecostat.2018.503d.1955
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05494509v1
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    References listed on IDEAS

    as
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    4. Emmanuel Saez, 2001. "Using Elasticities to Derive Optimal Income Tax Rates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 205-229.
    5. Herwig Immervoll & Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2007. "Welfare reform in European countries: a microsimulation analysis," Economic Journal, Royal Economic Society, vol. 117(516), pages 1-44, January.
    6. Emmanuel Saez & Manos Matsaganis & Panos Tsakloglou, 2012. "Earnings Determination and Taxes: Evidence From a Cohort-Based Payroll Tax Reform in Greece," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 493-533.
    7. Emmanuel Saez & Joel Slemrod & Seth H. Giertz, 2012. "The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 3-50, March.
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