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| Author: | Gurgand, M. Margolis, D.N. |
| Title: | Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income |
| Journal: | Journal of Public Economics
2008 : JUL, VOL.92:7, p. 1669-1697 |
| Index terms: | labour earnings minimum wage pay taxation welfare labour markets France models |
| Language: | eng |
| Abstract: | Based on a representative sample of individuals on France's main welfare program (called as 'the Revenu Minimum d'Insertion', or RMI), this paper estimates monetary incentives for employment among welfare recipients. Potential gains from working in a very detailed manner are calculated using the estimated joint distribution of wages and hours potentially offered to each individual. A simple structural labour supply model is estimated. Among others, it is found that potential gains are almost always positive but very small on average, especially for single mothers, due to the high implicit marginal tax rates embedded in the system etc. |
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