Why is Unemployment in France so High?

May 1, 1994

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Format: Chicago

Reza Moghadam. Why is Unemployment in France so High?, (USA: International Monetary Fund, 1994) accessed October 6, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

High and persistent unemployment, as well as its composition, e.g., high youth unemployment, suggests underlying structural problems in the French labor market. Comparisons with other industrial countries, as well as time series and cross-section empirical evidence, point to a number of potential causes of structural unemployment in France. These Include the generosity of long-term relative to short-term unemployment benefits, the minimum wage, the level of employers’ tax wedge, skills mismatch, and the cost of capital. The paper assesses recent labor market measures in France that are considered, on the whole, as a step in the right direction, and puts forward a number of additional possible measures which could help to ensure that when the economic recovery gathers pace, unemployment will decline more quickly and more substantially than in the past.

Subject: Employment, Labor, Labor markets, Minimum wages, Unemployment, Wages

Keywords: Contribution exemption, Employment, Family allowance, Labor market, Labor markets, Minimum wages, Participation rate, Pressure variable, Price dynamics, Replacement ratio, Southern Europe, Structural unemployment, Unemployment, Wages, WP

Publication Details

Pages:

84
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/058
Stock No:

WPIEA0581994
ISBN:

9781451966589
ISSN:

1018-5941

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