France: Selected Issues

July 12, 2016

Preview Citation

Format: Chicago

France: Selected Issues, (USA: International Monetary Fund, 2016) accessed November 21, 2024

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.

Subject: Banking, Employment, Expenditure, Financial institutions, Global systemically important banks, Labor, Labor taxes, Taxes, Unemployment, Unemployment benefits

Keywords: Adaptation effort, Bank, Bank income, CR, Employment, Equity price movement, EU bank, Europe, French bank, Funding cost, Global, Global systemically important banks, ISCR, Labor taxes, Minimum wage, Return on assets, Salary earner, Unemployment, Unemployment benefits, Wage, Wage responsiveness

Publication Details

Pages:

68
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/228
Stock No:

1FRAEA2016002
ISBN:

9781498359917
ISSN:

1934-7685

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