L'impact des incitations financières au travail sur les comportements individuels : une estimation pour le cas français

Abstract

Impact of Financial Incentives to Work on Individual Behaviour: An Estimation for France by Thomas Piketty Does making low-paid jobs more financially attractive for the jobless have a significant positive impact on employment levels in France? Various reforms introduced in France's social transfers system between 1982 and 1996 have changed the financial incentives to work for various categories of population, depending on the number of dependent children, family structure and other factors. We use individual data from the INSEE employment surveys conducted from 1982 to 1997 (involving some 150,000 observations each year) to see if the new incentives introduced by these reforms, such as the income support benefit (RMI) and first job allowance (APE), have led to adjustments in the differential employment levels of these various population groups, all other (observable) things being equal. This methodology has recently been used for the American Earned Income Tax Credit (EITC) Survey and in natural experiments in Canada. In principle, it enables us to make an unbiased estimate of the elasticity of labour force participation and job-seeking behaviour in relation to financial incentives. The findings suggest that elasticity is relatively greater for women (with or without dependent children). On the other hand, the data used do not enable us to show any significant effect of financial incentives to work on men's transition from non-employment to employment.

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