Évaluer les réformes des exonérations générales de cotisations sociales

Mathieu Bunel, Céline Emond and Yannick L’Horty
Authors registered in the RePEc Author Service: Yannick L'Horty ()

Revue de l'OFCE, 2012, vol. N° 126, issue 7, 57-103

Abstract: In the French social system, employers get reductions of the social security contributions which are targeted on low wage workers. The total amount of these reductions is 20 billion of Euros. In the crisis context, it has been proposed to reform the actual system in several ways. We propose to evaluate the effects on employment of these possible reforms within a desaggregated model that allows to consider both wages and firms heterogeneity. According to our computations, a total suppression of employers reduced social security contributions would increase labor cost by 4.4 % and destroy between 500 000 and 610 000 jobs, mainly low wage jobs: 85 % of jobs losses would be between 1 and 1.3 minimum wage. We also show that for a given budget amount, the best reforms to tackle unemployment are those which maintain the more labor cost reductions on low wage workers. Codes JEL: C14, J3, J38

Keywords: evaluation of economic policy; social contributions; labor costs (search for similar items in EconPapers)
JEL-codes: C14 J3 J38 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Evaluer les réformes des exonérations générales de cotisations sociales (2012)
Working Paper: Evaluer les réformes des exonérations générales de cotisations sociales (2012)
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