Économie et Statistique n° 412 The Relationship between Salary and Job Mobility in France - Job and Labour Force Flows in France: a Reassessment - The Motivating Effects of the French Tax Credit for Low-Earners: a Difficult Evaluation.

Economie et Statistique
Paru le : 01/10/2008
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Job and Labour Force Flows in France: a Reassessment

Claude Picart

Recent analyses of the labour market have focused on job and labour force flows. The size of gross job flows (job creation + destruction), in comparison with net flows (job creation - destruction), has contributed to the revival of analyses based on Schumpeter’s theory of creative destruction. It had so far been accepted that similar sized gross job flows existed in countries as different as France and the United States, which runs counter to the expected link between job protection and reallocations. Labour force flows are interpreted differently by those who, as part of matching models, see them as a simple extension of employment flows, and those who see them as having a distinctive identity. This study took advantage of the possibility of tracking employees over two years using the Annual Statement of Social Data (DADS) to remove the artificial flows created by company name changes from the measurement of job flows. This adjustment halves the job flows, which are therefore clearly lower in France than in the United States. The same source provides almost exhaustive information for examining the relationship between job flows and labour force flows. The effects of turnover or surplus labour force flows on job flows would seem more closely connected with sectorial characteristics than to job flows. The upward revision of these flows in this study is a sign of a specific dualism in the labour market, rather than the forcefulness of the creative destruction process. Sectors offering stable, attractive jobs, with high salaries and low turnover are set in opposition to sectors where turnover is intense, with low salaries and more young employees. Net flows of employees are observed from the first group of sectors to the second, while hiring the unemployed makes up for the deficit in the latter.

Economie et Statistique
No 412
Paru le : 01/10/2008