Is the German experience applicable to France?

L’expérience allemande est-elle transposable à la France?

Nathalie Chusseau and Joel Hellier ()

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Abstract: This article questions the consequences for France of a policy that would replicate part of the German experience since the mid-2000s and addresses the possibility of alternative strategies. Utilising the CGE model built by Beissinger et alii (2016), we implement a series of simulations to analyse the impacts of: (i) a German-type labour market reform lessening the reservation wage, and (ii) a policy which stimulates demand for non-tradable services. We show that: (i) structural differences could make a German-type policy less efficient and more painful (in terms of inequality) in France, and (ii) public action which directly targets demand for non-tradable services could provide an alternative policy.

Keywords: Inequality; Labour market reform; Unemployment; Reservation wage; Pro-no-tradables fiscal policy; Inégalités; Politique fiscale; Réforme du marché du travail; Services non échangeables; Salaire de réservation; Chômage (search for similar items in EconPapers)
Date: 2017-02
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Published in Economie et Prévision, 2017, 211-212 (2-3), pp.139-161. ⟨10.3917/ecop.211.0139⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01794564

DOI: 10.3917/ecop.211.0139

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