DP2394 Youth Employment Policies In France

Author(s): Denis Fougère, Francis Kramarz, Thierry Magnac
Publication Date: March 2000
Keyword(s): Evaluation Methodology, Minimum Wage, Training Programs, Youth Unemployment
JEL(s): C33, C41, J38, J68
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2394

In this paper, we present a summary of recent microeconometric results on the evaluation of the effects of active labour market policies on youth employment in France. We focus our discussion on three types of policies: (1) youth employment schemes for out-of-employment and low-skilled young adults, (2) on-the-job training schemes, (3) payroll tax subsidies for minimum wage workers. Training programs for unemployed young workers have in general no effects on post-training wages or employment probabilities, except if they have a large training content. In contrast, the reduction of labour costs has significant effects on employment probabilities of low-wage workers; however their effects appear to be stronger for workers between 25 and 30.