Cover IMF Staff Country Reports
France: Selected Issues
Author:
International Monetary Fund. European Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2016: Issue 228
Language:
English
Publication Date:
12 Jul 2016
DOI:
https://doi.org/10.5089/9781498359917.002
ISBN:
9781498359917
ISSN:
1934-7685
Pages:
68
Keywords:
ISCR; CR; wage; bank; minimum wage; return on assets; equity price movement; EU bank; salary earner; bank income; funding cost; French bank; wage responsiveness; adaptation effort; Labor taxes; Unemployment; Global systemically important banks; Unemployment benefits; Employment; Global; Europe
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This Selected Issues paper examines the causes and potential remedies for structural unemployment in France. Structural unemployment in France has long been elevated, and appears to have edged up further since the crisis. This reflects both demand and supply factors, including: high labor taxes, wage stickiness, a growing skill gap, hysteresis effects from the crisis years, a lengthy period of elevated economic uncertainty, inactivity traps created by the unemployment and welfare benefit systems, and demographic factors that have pushed up the labor force. The cyclical recovery is projected to bring down the unemployment rate only slowly. Reducing labor tax wedges can increase both output and employment.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2016: Issue 228