France: Selected Issues
Electronic Access:
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Summary:
This Selected Issues paper examines the causes and potential remedies for structural unemployment in France. Structural unemployment in France has long been elevated, and appears to have edged up further since the crisis. This reflects both demand and supply factors, including: high labor taxes, wage stickiness, a growing skill gap, hysteresis effects from the crisis years, a lengthy period of elevated economic uncertainty, inactivity traps created by the unemployment and welfare benefit systems, and demographic factors that have pushed up the labor force. The cyclical recovery is projected to bring down the unemployment rate only slowly. Reducing labor tax wedges can increase both output and employment.
Series:
Country Report No. 2016/228
Subject:
Banking Employment Expenditure Financial institutions Global systemically important banks Labor Labor taxes Taxes Unemployment Unemployment benefits
English
Publication Date:
July 12, 2016
ISBN/ISSN:
9781498359917/1934-7685
Stock No:
1FRAEA2016002
Pages:
68
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