IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01017683.html
   My bibliography  Save this paper

Tax cuts or social investment? Evaluating the opportunity cost of French employment strategy

Author

Listed:
  • Bruno Palier

    (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

  • Clément Carbonnier

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

  • Michaël Zemmour

    (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

Tax expenditures are widely used by French governments as em-ployment and social policies. Such programmes together amounted to more than 1.3 points of GDP in 2011. Thanks to a systematic review of academic policy evaluations, we assess the efficiency of the different parts of such policies, showing that at least €6 billion is used for policies whose cost is greater than €62,500 per year and job created, and €0.5 billion for policies whose cost is greater than €160,000 per year and job created. We examine the replacement of these tax expenditures by direct public funding for (publicly or pri-vately delivered) "quality" jobs addressing specific social needs. We discuss the conditions under which at least comparable employment performances could be achieved (factoring in the crowding out of privately funded jobs and the properties of created jobs in terms of the service provided or the characteristics of suppliers and consum-ers) as well as any positive economic and social externalities.

Suggested Citation

  • Bruno Palier & Clément Carbonnier & Michaël Zemmour, 2014. "Tax cuts or social investment? Evaluating the opportunity cost of French employment strategy," Working Papers hal-01017683, HAL.
    • Handle: RePEc:hal:wpaper:hal-01017683
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01017683
    as

    Download full text from publisher

    File URL: https://sciencespo.hal.science/hal-01017683/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Annamaria Simonazzi, 2009. "Care regimes and national employment models," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 211-232, March.
    2. Lucie DAVOINE & Christine ERHEL & Mathilde GUERGOAT-LARIVIERE, 2008. "Monitoring quality in work: European Employment Strategy indicators and beyond," International Labour Review, International Labour Organization, vol. 147(2-3), pages 163-198, June.
    3. Bruno Palier & Kathleen Thelen, 2010. "Institutionalizing Dualism: Complementarities and Change in France and Germany," Politics & Society, , vol. 38(1), pages 119-148, March.
    4. Lucie Davoine & Christine Erhel, 2006. "Monitoring Employment Quality in Europe: European Employment Strategy Indicators and Beyond," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00272015, HAL.
    5. Lucie Davoine & Christine Erhel & Mathilde Guergoat-Larivière, 2008. "Monitoring quality in work: european employment strategy indicators and beyond," PSE-Ecole d'économie de Paris (Postprint) halshs-00317347, HAL.
    6. Lucie Davoine & Christine Erhel & Mathilde Guergoat-Larivière, 2008. "Monitoring quality in work: european employment strategy indicators and beyond," Post-Print halshs-00317347, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Clément Carbonnier, 2023. "Welfare Economics and Neoliberalism: Interpreting the ideal type of perfect competition general equilibrium," Working Papers hal-04062786, HAL.
    2. Eduardo Garzón Espinosa & Bibiana Medialdea García & Esteban Cruz Hidalgo, 2021. "Fiscal Policy Approaches: An Inquiring Look From The Modern Monetary Theory," Journal of Economic Issues, Taylor & Francis Journals, vol. 55(4), pages 999-1022, October.
    3. repec:hal:spmain:info:hdl:2441/71qdj9669e8dore9fmfi4a8m42 is not listed on IDEAS
    4. Lin, Boqiang & Jia, Zhijie, 2019. "Tax rate, government revenue and economic performance: A perspective of Laffer curve," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    5. repec:spo:wpmain:info:hdl:2441/4v8c8tnfgu8g392dpm6uaefuus is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/71qdj9669e8dore9fmfi4a8m42 is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/4v8c8tnfgu8g392dpm6uaefuus is not listed on IDEAS
    8. Agustin Redonda, 2016. "Tax Expenditures and Sustainability. An Overview," Discussion Notes 1603, Council on Economic Policies.
    9. Askenazy, Philippe & Palier, Bruno, 2018. "France: rising precariousness supported by the welfare state," CEPREMAP Working Papers (Docweb) 1801, CEPREMAP.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/18k79jk7138279qstaf2rdulvu is not listed on IDEAS
    2. repec:spo:wpmain:info:hdl:2441/18k79jk7138279qstaf2rdulvu is not listed on IDEAS
    3. repec:hal:journl:hal-01017683 is not listed on IDEAS
    4. repec:hal:pseose:halshs-00566139 is not listed on IDEAS
    5. Bruno Palier & Clément Carbonnier & Michaël Zemmour, 2014. "Exonérations ou investissement social ? Une évaluation du coût d'opportunité de la stratégie française pour l'emploi," SciencePo Working papers Main hal-01087479, HAL.
    6. Clark, Andrew E., 2009. "Work, Jobs And Well-Being Across the Millennium," CEPREMAP Working Papers (Docweb) 0901, CEPREMAP.
    7. Eduardo Bericat & Eva Sánchez Bermejo, 2016. "Structural Gender Equality in Europe and Its Evolution Over the First Decade of the Twentyfirst Century," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 55-81, May.
    8. repec:hal:spmain:info:hdl:2441/4tnsf7g7rd9qjp6uavodasm5vi is not listed on IDEAS
    9. Sonja Drobnič & Barbara Beham & Patrick Präg, 2010. "Good Job, Good Life? Working Conditions and Quality of Life in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(2), pages 205-225, November.
    10. Rémi BAZILLIER & Cristina TRANDAS-BOBOC & Oana CALAVREZO, 2014. "Employment vulnerability in Europe: Is there a migration effect?," LEO Working Papers / DR LEO 1825, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    11. Janine Leschke & Andrew Watt, 2014. "Challenges in Constructing a Multi-dimensional European Job Quality Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 1-31, August.
    12. repec:spo:wpmain:info:hdl:2441/4tnsf7g7rd9qjp6uavodasm5vi is not listed on IDEAS
    13. Drobnič, Sonja & Beham, Barbara & Präg, Patrick, 2018. "Working Conditions in Europe," SocArXiv 493ev, Center for Open Science.
    14. Ellalee, Haider & Alali, Walid Y., 2018. "FDI, Industrial Policy and Employment Impacts on Brexit," MPRA Paper 117507, University Library of Munich, Germany, revised 20 Oct 2018.
    15. DEGUILHEM Thibaud & FRONTENAUD Adrien, 2016. "Quality of employment regimes and diversity of emerging countries," Cahiers du GREThA (2007-2019) 2016-03, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    16. Tânia FERRARO & Leonor PAIS & Nuno REBELO DOS SANTOS & João Manuel MOREIRA, 2018. "The Decent Work Questionnaire: Development and validation in two samples of knowledge workers," International Labour Review, International Labour Organization, vol. 157(2), pages 243-265, June.
    17. Kaijing Xue & Dingde Xu & Shaoquan Liu, 2019. "Social Network Influences on Non-Agricultural Employment Quality for Part-Time Peasants: A Case Study of Sichuan Province, China," Sustainability, MDPI, vol. 11(15), pages 1-22, July.
    18. Marek Gora & Piotr Lewandowski & Maciej Lis, 2017. "Temporary employment boom in Poland – a job quality vs. quantity trade-off?," IBS Working Papers 04/2017, Instytut Badan Strukturalnych.
    19. Andrei Moroc & Octavian Bărnuțiu, 2019. "Job Quality, Innovation and Employment – a Structural Equation Modeling on Regional Level," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 5(1), pages 54-65, April.
    20. Deguilhem, Thibaud & Frontenaud, Adrien, 2016. "Régimes de qualité de l’emploi et diversité des pays émergents," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 19.
    21. Yang, Yanlin & Shao, Xu, 2018. "Understanding industrialization and employment quality changes in China: Development of a qualitative measurement," China Economic Review, Elsevier, vol. 47(C), pages 274-281.
    22. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2019. "Immigration and unemployment in Europe: does the core-periphery dualism matter?," GLO Discussion Paper Series 310, Global Labor Organization (GLO).
    23. María Cascales Mira, 2021. "New Model for Measuring Job Quality: Developing an European Intrinsic Job Quality Index (EIJQI)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 625-645, June.
    24. Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2020. "The effect of immigration on unemployment in Europe: Does the core-periphery dualism matter?," Economic Modelling, Elsevier, vol. 84(C), pages 249-258.
    25. Piasna, Agnieszka & Burchell, Brendan & Sehnbruch, Kirsten, 2019. "Job quality in European employment policy: one step forward, two steps back?," LSE Research Online Documents on Economics 102888, London School of Economics and Political Science, LSE Library.
    26. José María Arranz & Carlos García-Serrano & Virginia Hernanz, 2018. "Employment Quality: Are There Differences by Types of Contract?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 203-230, May.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wpaper:hal-01017683. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.