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Low-wage employment in France: A cross-country perspective

Author

Listed:
  • Cesar Barreto
  • Stéphane Carcillo
  • Jonas Fluchtmann
  • Alexandre Georgieff
  • Alexander Hijzen
  • Daniele Pacifico
  • Eliza-Jane Pearsall
  • Agnès Puymoyen

Abstract

This study investigates factors favouring a possible "smicardisation" of French workers - the process of an increasing coverage of workers at the minimum wage. First, the minimum wage is relatively high in France compared with other countries, with the result that a large number of workers are close to it. Second, low wages reflect less the characteristics of firms or sectors than the low skills of workers, the resolution of which requires appropriate education and training policies, effective over the long-term. Finally, an analysis of tax and benefit systems highlights the existence of potential low-wage trap mechanisms, which are particularly significant in France compared to other countries. Nevertheless, analysis of individual trajectories shows that it is no more difficult for low-wage workers to climb the wage ladder in France than in the other selected countries.

Suggested Citation

  • Cesar Barreto & Stéphane Carcillo & Jonas Fluchtmann & Alexandre Georgieff & Alexander Hijzen & Daniele Pacifico & Eliza-Jane Pearsall & Agnès Puymoyen, 2025. "Low-wage employment in France: A cross-country perspective," OECD Social, Employment and Migration Working Papers 313, OECD Publishing.
    • Handle: RePEc:oec:elsaab:313-en
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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