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Un bilan des études sur la Prime pour l'emploi

Elena Stancanelli and Henri Sterdyniak ()

Revue de l'OFCE, 2004, vol. 88, issue 1, 17-41

Abstract: This paper presents a critical discussion of the evaluation studies on the French tax credit programme, ?Prime Pour l?Emploi?, and proposes some possible reforms. The French tax credit was created in 2001 and reformed later on. Its purpose is twofold: to increase the take-home pay of the ?working poor? and to stimulate the employment of the low-skilled. The few evaluation studies available to date are based on simulation models. The incentives to work of the programme seem very small, although positive overall, while the redistribution effects are quite limited. Married women may be discouraged from work because of the means-testing of household resources. By construction, the tax credit only goes to individuals in work. A more attractive alternative would be either a wage-bonus for the low-paid or a Basic Income programme.

Date: 2004
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