Basic Income/Minimum Wage Schedule and the Occurrence of Inactivity Traps: Some Evidence on the French Labor Market

Thierry Laurent () and Yannick L’Horty
Additional contact information
Thierry Laurent: EPEE, Center for Economic Policy Studies
Authors registered in the RePEc Author Service: Yannick L'Horty ()

No 03-01, Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne

Abstract: The aim of this paper is to suggest an economic modeling of labor force participation microeconomic decisions in an inter-temporal framework characterized by the occurrence of a basic incomes/minimum wage scheme. We use the observed probabilities of transitions between different kind of jobs on the French labor market, for different categories of workers (age, sex, skills etc.), and the observed incomes associated to each kind of job, to identify the categories of workers that face inactivity or poverty trap problems. The results show (i) the occurrence of important inequalities between workers concerning the "inter-temporal" return of work and, consequently, the incentive to work, (ii) no obvious link between the occurrence of a static trap (work does not pay in the short run) and incentive to work problems. Moreover the results stress that unskilled male workers do have interest to accept jobs that do not pay, while skilled male workers do not have interest to accept jobs that do pay.

Keywords: Minimum Income; Poverty Traps; Jobs Transitions (search for similar items in EconPapers)
JEL-codes: J21 J22 J31 J32 J62 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.univ-evry.fr/fileadmin/mediatheque/uev ... es/Epee/wp/03-01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eve:wpaper:03-01

Access Statistics for this paper

More papers in Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne Contact information at EDIRC.
Bibliographic data for series maintained by Samuel Nosel ().