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The return to work policies in a time of crisis: a comparison between Germany and France

Julien Reysz ()
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Julien Reysz: CREG - Centre de recherche en économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: Financial innovations for jobseekers have resulted, in Germany and France, in the implementation of financial incentives to return to work. These financial incentives have taken the form of permanent incentives with the payment of grants to return to work and of financial aids to business creation. They also have taken the form of transitory incentives through the tax credit mechanism and through the diminution of the marginal tax rate applied to the measure of "labour income plus social allowances". The effects of the financial incentives on reintegration into the labour market remain ambiguous. Despite their rather positive impact on employment, they do not significantly increase the rate of return to work of the unemployed. In addition, they contribute to the development of low-wage jobs and do not always allow the recipients to go out of poverty.

Keywords: financial incentives; return to work; Germany; France (search for similar items in EconPapers)
Date: 2016-06-10
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Published in Crisis and the social sciences new challenges and perspectives conference proceedings : 1st international conference in contemporary social sciences, Faculty of social, economic and political sciences; University of Crete, Jun 2016, Rethymnon, Greece. pp.278-299

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