IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05787980.html

Estimating the Effects of a French Reform on Employment Using a Macrosectoral Approach

Author

Listed:
  • Nicolas Yol

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - UT2J - Université Toulouse - Jean Jaurès - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, UTTOP - Université de Technologie Tarbes Occitanie Pyrénées - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

Abstract

ABSTRACT This article evaluates the effects on employment of a major French reform in force between 2013 and 2018. The measure reduced labor costs by introducing a corporate tax credit proportional to the wage bill for workers earning up to 2.5 times the French minimum legal wage. Insofar as almost all firms could benefit from the reform, no control group is available for estimating the effects on employment. This paper proposes an original approach to overcome the absence of a control group. Using data from France's national accounts, a structural model of employment is estimated from which counterfactual scenarios of employment by branch are simulated. The reform had a positive but minor impact on employment, confined to service activities. This result is interpreted as a consequence of the design of the measure that shifted taxation from firms to households, producing a positive supply shock but a negative demand shock.

Suggested Citation

  • Nicolas Yol, 2026. "Estimating the Effects of a French Reform on Employment Using a Macrosectoral Approach," Post-Print hal-05787980, HAL.
    • Handle: RePEc:hal:journl:hal-05787980
    DOI: 10.1111/kykl.70089
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05787980. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.