Les baisses de cotisations sociales ultramarines

Nicolas Bauduin, François Legendre and Yannick L’Horty
Authors registered in the RePEc Author Service: Yannick L'Horty ()

Revue française d'économie, 2009, vol. Volume XXIV, issue 3, 167-193

Abstract: The aim of this paper is to evaluate the employment effect of wage tax cuts in the four French departements d?outre mer (Guadeloupe, Guyana, La Réunion, Martinique). We are using an ad hoc theoretical model calibrated on administrative data sources. Our model distinguishes several skill levels and several area of activity. According to our simulations results, about 10 % of DOM employment could be suppressed if the French continental Legislation would be applied to the DOM. Main effects are in the Tourism sector with a 21 % employment decrease. These results are quite similar among the DOM, with an employment decrease more marked in Guyana and in Guadeloupe, rather than in La Réunion and Martinique. The suppression of all wage tax cuts would give a 15 % employment decrease, which means 44 000 employment suppressed in the four DOM.

Date: 2009
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Journal Article: Les baisses de cotisations sociales ultramarines (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cai:rferfe:rfe_093_0167

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