Données sociales : La société française - 2006 ed.

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Paru le : 01/05/2006
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Disincentives to returning to work

Yannick L'Horty, Jean-François Ouvrard

Employment offered to people claiming French income support (RMI) is not always guaranteed to pay more than the actual welfare payments, particularly when the jobs are part time, poorly paid or unstable. Income support decreases on a sliding scale, by one euro for each euro earned, significantly reducing benefits for the most disadvantaged. Several measures have been taken to remedy the situation: improving gain sharing at the end of income support, employment bonus (Prime pour l'Emploi), and reform of social benefits. Whilst these have facilitated the return to work, reductions in income remain high, mainly due to local and extra-legal social benefits. However an immediate increase in income is not necessarily the crucial factor in deciding whether or not to accept a job. Future earnings, linked to career progression opportunities opened up by a particular job, also have to be considered. Such decisions depend on the type of position, age or level of education, and incentives to return to work remain unequal.

Insee Références
Paru le : 01/05/2006