Payroll tax reductions and job flows in France

Richard Duhautois (1, 2) , Fabrice Gilles (3, 4)

1 CEE - Centre d'études de l'emploi
2 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
3 EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie
4 TEPP - Travail, Emploi et Politiques Publiques

In France, policies that aim at reducing labour cost have extended to more and more workers since the beginning of the 90s. Evaluations of the effect of payroll tax reduction often use estimations of labour demand equations. In this paper, we consider the impact of labour tax cuts on job creations and destructions through the Fillon reform (2003), by using a fixed effect instrumental variable approach and a sectora l pseudo panel dataset. Over 2002-2005, our estimates show that PTR let job flows unchanged.

Domaines: Econométrie de la finance [q-fin.ST]

Richard Duhautois, Fabrice Gilles. Payroll tax reductions and job flows in France. 2013. ⟨hal-01006652⟩