Can public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand. To explain this relation, we develop a model of learning of the quality of labor relations. State regulation crowds out the possibility for workers to experiment negotiation and learn about the true cooperative nature of participants in the labor market. This crowding out effect can give rise to multiple equilibria: a "good" equilibrium characterized by strong beliefs in cooperation, leading to high union density and low state regulation; and a "bad" equilibrium, characterized by distrustful labor relations, low union density and strong state regulation of the minimum wage. We then use surveys on social attitudes and unionization behavior to document the relation between minimum wage legislation and the beliefs about the scope of cooperation in the labor market.
Can public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand. To explain this relation, we develop a model of learning of the quality of labor relations. State regulation crowds out the possibility for workers to experiment negotiation and learn about the true cooperative nature of participants in the labor market. This crowding out effect can give rise to multiple equilibria: a "good" equilibrium characterized by strong beliefs in cooperation, leading to high union density and low state regulation; and a "bad" equilibrium, characterized by distrustful labor relations, low union density and strong state regulation of the minimum wage. We then use surveys on social attitudes and unionization behavior to document the relation between minimum wage legislation and the beliefs about the scope of cooperation in the labor market.
Can public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand. To explain this relation, we develop a model of learning of the quality of labor relations. State regulation crowds out the possibility for workers to experiment negotiation and learn about the true cooperative nature of participants in the labor market. This crowding out effect can give rise to multiple equilibria: a "good" equilibrium characterized by strong beliefs in cooperation, leading to high union density and low state regulation; and a "bad" equilibrium, characterized by distrustful labor relations, low union density and strong state regulation of the minimum wage. We then use surveys on social attitudes and unionization behavior to document the relation between minimum wage legislation and the beliefs about the scope of cooperation in the labor market.
This study examines how minimum wage laws affect the share of immigrants receiving welfare benefits. Minimum wage increases might have larger effects among low-skilled immigrants than among low-skilled natives because, on average, immigrants are less productive. We develop an analytical framework in which a government legislated minimum wage increase promotes a decrease in labor demand and an increase in the earned wage. The net impact on the expected wage is then ambiguous and so is the impact on search effort of unemployed. However, we expect the reduction in labor demand to be more important for immigrants due to their lower productivity. Immigrants remain unemployed and eventually become welfare recipients. Using the French Labor Force Surveys 2003-2016 we exploit the 2006 and 2012 government legislated minimum wage increases and find consistent evidence that a discretionary increase in the minimum wage induces a rise in the share of immigrants receiving welfare benefits which is more important than the rise estimated for natives. This result is driven by low-skilled immigrants and no significant effect arises for high-skilled. Endogeneity issues are addressed through an IV approach.
This study examines how minimum wage laws affect the share of immigrants receiving welfare benefits. Minimum wage increases might have larger effects among low-skilled immigrants than among low-skilled natives because, on average, immigrants are less productive. We develop an analytical framework in which a government legislated minimum wage increase promotes a decrease in labor demand and an increase in the earned wage. The net impact on the expected wage is then ambiguous and so is the impact on search effort of unemployed. However, we expect the reduction in labor demand to be more important for immigrants due to their lower productivity. Immigrants remain unemployed and eventually become welfare recipients. Using the French Labor Force Surveys 2003-2016 we exploit the 2006 and 2012 government legislated minimum wage increases and find consistent evidence that a discretionary increase in the minimum wage induces a rise in the share of immigrants receiving welfare benefits which is more important than the rise estimated for natives. This result is driven by low-skilled immigrants and no significant effect arises for high-skilled. Endogeneity issues are addressed through an IV approach.
This paper investigates wages and working conditions of operators in the French food manufacturing sector. In many countries (especially the USA and the UK) the food processing sector employs by a very large fraction of low-paid workers. In France, as evidenced by our case studies in confectionery and meat processing, the model at play is quite different. It is rather characterised by high relative wages, high work intensity, and bad working conditions. This is essentially due to the fact that, in order to cope with increasing competitive pressures - due to the growing market power of retailers, the greater requirements in terms of health and security, as well as to changing consumer habits - French firms have been less able to compress compensation, in contrast with other countries, notably Germany and the United Kingdom. Indeed, the French regulatory framework reduces the margin for adopting "social dumping" strategies. As a consequence, French firms have reacted by increasing productivity by adopting "lean production" and new production processes in which physical burden is lower but mental strain is higher. As a consequence, even if from a foreign eye employment conditions of food processing operators may appear as rather good in France, dissatisfaction is high among workers. ; Cet article étudie les conditions de rémunération et de travail des ouvriers dans le secteur agro-alimentaire français. Dans de nombreux pays (en particulier les Etats-Unis et le Royaume-Uni), l'industrie agro-alimentaire emploie une proportion très importante de travailleurs à bas salaires. En France, les études de cas que nous avons menées dans les secteurs de la confiserie et de la préparation industrielle à base de viande montrent que le modèle à l'œuvre est assez différent. Il est plutôt caractérisé par des salaires élevés en termes relatifs, une productivité importante et de mauvaises conditions de travail. Cela tient pour l'essentiel au fait que, pour faire face aux pressions concurrentielles croissantes - liées à l'accroissement du pouvoir de marché des grandes surfaces, aux exigences croissantes en matière d'hygiène et sécurité et aux changements des habitudes alimentaires des consommateurs - les entreprises françaises ont eu moins de latitude pour faire pression sur les rémunérations que dans d'autres pays tels que l'Allemagne ou le Royaume-Uni. En effet, les institutions françaises régulant le marché du travail limitent considérablement les possibilités de dumping social. Par conséquent, les entreprises ont régi en augmentant la productivité grâce à l'adoption de nouvelles formes d'organisation du travail et de processus de production innovants. Ceux-ci ont permis de réduire la pénibilité physique mais ils ont contribué à accroître la charge mentale. De ce fait, même si, vu de l'étranger les conditions d'emploi des travailleurs de l'agro-alimentaire français peuvent paraître favorables, l'insatisfaction est grande parmi les ouvriers.
This paper investigates wages and working conditions of operators in the French food manufacturing sector. In many countries (especially the USA and the UK) the food processing sector employs by a very large fraction of low-paid workers. In France, as evidenced by our case studies in confectionery and meat processing, the model at play is quite different. It is rather characterised by high relative wages, high work intensity, and bad working conditions. This is essentially due to the fact that, in order to cope with increasing competitive pressures - due to the growing market power of retailers, the greater requirements in terms of health and security, as well as to changing consumer habits - French firms have been less able to compress compensation, in contrast with other countries, notably Germany and the United Kingdom. Indeed, the French regulatory framework reduces the margin for adopting "social dumping" strategies. As a consequence, French firms have reacted by increasing productivity by adopting "lean production" and new production processes in which physical burden is lower but mental strain is higher. As a consequence, even if from a foreign eye employment conditions of food processing operators may appear as rather good in France, dissatisfaction is high among workers. ; Cet article étudie les conditions de rémunération et de travail des ouvriers dans le secteur agro-alimentaire français. Dans de nombreux pays (en particulier les Etats-Unis et le Royaume-Uni), l'industrie agro-alimentaire emploie une proportion très importante de travailleurs à bas salaires. En France, les études de cas que nous avons menées dans les secteurs de la confiserie et de la préparation industrielle à base de viande montrent que le modèle à l'œuvre est assez différent. Il est plutôt caractérisé par des salaires élevés en termes relatifs, une productivité importante et de mauvaises conditions de travail. Cela tient pour l'essentiel au fait que, pour faire face aux pressions concurrentielles croissantes - liées à l'accroissement du pouvoir de marché des grandes surfaces, aux exigences croissantes en matière d'hygiène et sécurité et aux changements des habitudes alimentaires des consommateurs - les entreprises françaises ont eu moins de latitude pour faire pression sur les rémunérations que dans d'autres pays tels que l'Allemagne ou le Royaume-Uni. En effet, les institutions françaises régulant le marché du travail limitent considérablement les possibilités de dumping social. Par conséquent, les entreprises ont régi en augmentant la productivité grâce à l'adoption de nouvelles formes d'organisation du travail et de processus de production innovants. Ceux-ci ont permis de réduire la pénibilité physique mais ils ont contribué à accroître la charge mentale. De ce fait, même si, vu de l'étranger les conditions d'emploi des travailleurs de l'agro-alimentaire français peuvent paraître favorables, l'insatisfaction est grande parmi les ouvriers.
This paper investigates wages and working conditions of operators in the French food manufacturing sector. In many countries (especially the USA and the UK) the food processing sector employs by a very large fraction of low-paid workers. In France, as evidenced by our case studies in confectionery and meat processing, the model at play is quite different. It is rather characterised by high relative wages, high work intensity, and bad working conditions. This is essentially due to the fact that, in order to cope with increasing competitive pressures - due to the growing market power of retailers, the greater requirements in terms of health and security, as well as to changing consumer habits - French firms have been less able to compress compensation, in contrast with other countries, notably Germany and the United Kingdom. Indeed, the French regulatory framework reduces the margin for adopting "social dumping" strategies. As a consequence, French firms have reacted by increasing productivity by adopting "lean production" and new production processes in which physical burden is lower but mental strain is higher. As a consequence, even if from a foreign eye employment conditions of food processing operators may appear as rather good in France, dissatisfaction is high among workers. ; Cet article étudie les conditions de rémunération et de travail des ouvriers dans le secteur agro-alimentaire français. Dans de nombreux pays (en particulier les Etats-Unis et le Royaume-Uni), l'industrie agro-alimentaire emploie une proportion très importante de travailleurs à bas salaires. En France, les études de cas que nous avons menées dans les secteurs de la confiserie et de la préparation industrielle à base de viande montrent que le modèle à l'œuvre est assez différent. Il est plutôt caractérisé par des salaires élevés en termes relatifs, une productivité importante et de mauvaises conditions de travail. Cela tient pour l'essentiel au fait que, pour faire face aux pressions concurrentielles croissantes - liées à l'accroissement du pouvoir de marché des grandes surfaces, aux exigences croissantes en matière d'hygiène et sécurité et aux changements des habitudes alimentaires des consommateurs - les entreprises françaises ont eu moins de latitude pour faire pression sur les rémunérations que dans d'autres pays tels que l'Allemagne ou le Royaume-Uni. En effet, les institutions françaises régulant le marché du travail limitent considérablement les possibilités de dumping social. Par conséquent, les entreprises ont régi en augmentant la productivité grâce à l'adoption de nouvelles formes d'organisation du travail et de processus de production innovants. Ceux-ci ont permis de réduire la pénibilité physique mais ils ont contribué à accroître la charge mentale. De ce fait, même si, vu de l'étranger les conditions d'emploi des travailleurs de l'agro-alimentaire français peuvent paraître favorables, l'insatisfaction est grande parmi les ouvriers.
This paper investigates wages and working conditions of operators in the French food manufacturing sector. In many countries (especially the USA and the UK) the food processing sector employs by a very large fraction of low-paid workers. In France, as evidenced by our case studies in confectionery and meat processing, the model at play is quite different. It is rather characterised by high relative wages, high work intensity, and bad working conditions. This is essentially due to the fact that, in order to cope with increasing competitive pressures - due to the growing market power of retailers, the greater requirements in terms of health and security, as well as to changing consumer habits - French firms have been less able to compress compensation, in contrast with other countries, notably Germany and the United Kingdom. Indeed, the French regulatory framework reduces the margin for adopting "social dumping" strategies. As a consequence, French firms have reacted by increasing productivity by adopting "lean production" and new production processes in which physical burden is lower but mental strain is higher. As a consequence, even if from a foreign eye employment conditions of food processing operators may appear as rather good in France, dissatisfaction is high among workers. ; Cet article étudie les conditions de rémunération et de travail des ouvriers dans le secteur agro-alimentaire français. Dans de nombreux pays (en particulier les Etats-Unis et le Royaume-Uni), l'industrie agro-alimentaire emploie une proportion très importante de travailleurs à bas salaires. En France, les études de cas que nous avons menées dans les secteurs de la confiserie et de la préparation industrielle à base de viande montrent que le modèle à l'œuvre est assez différent. Il est plutôt caractérisé par des salaires élevés en termes relatifs, une productivité importante et de mauvaises conditions de travail. Cela tient pour l'essentiel au fait que, pour faire face aux pressions concurrentielles croissantes - liées à l'accroissement du pouvoir de marché des grandes surfaces, aux exigences croissantes en matière d'hygiène et sécurité et aux changements des habitudes alimentaires des consommateurs - les entreprises françaises ont eu moins de latitude pour faire pression sur les rémunérations que dans d'autres pays tels que l'Allemagne ou le Royaume-Uni. En effet, les institutions françaises régulant le marché du travail limitent considérablement les possibilités de dumping social. Par conséquent, les entreprises ont régi en augmentant la productivité grâce à l'adoption de nouvelles formes d'organisation du travail et de processus de production innovants. Ceux-ci ont permis de réduire la pénibilité physique mais ils ont contribué à accroître la charge mentale. De ce fait, même si, vu de l'étranger les conditions d'emploi des travailleurs de l'agro-alimentaire français peuvent paraître favorables, l'insatisfaction est grande parmi les ouvriers.
This paper investigates wages and working conditions of operators in the French food manufacturing sector. In many countries (especially the USA and the UK) the food processing sector employs by a very large fraction of low-paid workers. In France, as evidenced by our case studies in confectionery and meat processing, the model at play is quite different. It is rather characterised by high relative wages, high work intensity, and bad working conditions. This is essentially due to the fact that, in order to cope with increasing competitive pressures - due to the growing market power of retailers, the greater requirements in terms of health and security, as well as to changing consumer habits - French firms have been less able to compress compensation, in contrast with other countries, notably Germany and the United Kingdom. Indeed, the French regulatory framework reduces the margin for adopting "social dumping" strategies. As a consequence, French firms have reacted by increasing productivity by adopting "lean production" and new production processes in which physical burden is lower but mental strain is higher. As a consequence, even if from a foreign eye employment conditions of food processing operators may appear as rather good in France, dissatisfaction is high among workers. ; Cet article étudie les conditions de rémunération et de travail des ouvriers dans le secteur agro-alimentaire français. Dans de nombreux pays (en particulier les Etats-Unis et le Royaume-Uni), l'industrie agro-alimentaire emploie une proportion très importante de travailleurs à bas salaires. En France, les études de cas que nous avons menées dans les secteurs de la confiserie et de la préparation industrielle à base de viande montrent que le modèle à l'œuvre est assez différent. Il est plutôt caractérisé par des salaires élevés en termes relatifs, une productivité importante et de mauvaises conditions de travail. Cela tient pour l'essentiel au fait que, pour faire face aux pressions concurrentielles croissantes - liées à l'accroissement du pouvoir de marché des grandes surfaces, aux exigences croissantes en matière d'hygiène et sécurité et aux changements des habitudes alimentaires des consommateurs - les entreprises françaises ont eu moins de latitude pour faire pression sur les rémunérations que dans d'autres pays tels que l'Allemagne ou le Royaume-Uni. En effet, les institutions françaises régulant le marché du travail limitent considérablement les possibilités de dumping social. Par conséquent, les entreprises ont régi en augmentant la productivité grâce à l'adoption de nouvelles formes d'organisation du travail et de processus de production innovants. Ceux-ci ont permis de réduire la pénibilité physique mais ils ont contribué à accroître la charge mentale. De ce fait, même si, vu de l'étranger les conditions d'emploi des travailleurs de l'agro-alimentaire français peuvent paraître favorables, l'insatisfaction est grande parmi les ouvriers.
La permanence d'un chômage élevé dans les départements et régions françaises d'outre-mer et la surexposition de certains publics, en particulier les jeunes et les femmes, pose la question de l'efficacité des politiques publiques de lutte contre le chômage déployées en outre-mer. Cet article propose une revue des travaux théoriques et appliqués qui ont exploré les causes du chômage des départements et régions d'outre-mer, complétée par des exploitations statistiques d'indicateurspermettant de caractériser l'état du marché du travail. Alors qu'une première génération de travaux privilégiait l'argument d'un excès d'offre de travail et des explications socio-démographiques, les analyses plus récentes mettent l'accent sur des déterminants économiques de l'insuffisance de la demande de travail. La co-existence d'un chômage élevé et de difficultés de recrutement suggère par ailleurs la présence de problèmes d'appariement entre offre et demande, qui sont moins explorésmais qui contribuent sans doute eux aussi à l'explication du chômage domien. Il y a bien une pluralité de facteurs qui doivent être évoqués pour rendre compte de la persistance du chômage ultra-marin, ce qui a des implications importantes pour les politiques de l'emploi dans les DOM.
La permanence d'un chômage élevé dans les départements et régions françaises d'outre-mer et la surexposition de certains publics, en particulier les jeunes et les femmes, pose la question de l'efficacité des politiques publiques de lutte contre le chômage déployées en outre-mer. Cet article propose une revue des travaux théoriques et appliqués qui ont exploré les causes du chômage des départements et régions d'outre-mer, complétée par des exploitations statistiques d'indicateurspermettant de caractériser l'état du marché du travail. Alors qu'une première génération de travaux privilégiait l'argument d'un excès d'offre de travail et des explications socio-démographiques, les analyses plus récentes mettent l'accent sur des déterminants économiques de l'insuffisance de la demande de travail. La co-existence d'un chômage élevé et de difficultés de recrutement suggère par ailleurs la présence de problèmes d'appariement entre offre et demande, qui sont moins explorésmais qui contribuent sans doute eux aussi à l'explication du chômage domien. Il y a bien une pluralité de facteurs qui doivent être évoqués pour rendre compte de la persistance du chômage ultra-marin, ce qui a des implications importantes pour les politiques de l'emploi dans les DOM.
In a forthcoming article in the Journal of Economic Perspectives1, Harvard Professor and bestselling textbook author Greg Mankiw defends the income earned by the richest 1%, as opposed to the movement of the 99% that attacks the explosion of inequality and the concentration of income and wealth. Mankiw cites the study by Thomas Piketty and Emmanuel Saez (2003, updated 2011)2, which shows that in the United States the share of income earned by the richest 1% rose from 7.7% in 1973 to17.4% in 2010. Mankiw argues that the income received by the 1% is fair and denounces the idea of taxing them at what he considers confiscatory rates. He criticizes in particular the proposal of French President François Hollande to tax high income at a marginal rate of 75%, in the following terms: "using the force of government to seize such a large share of the fruits of someone else's labor is unjust, even if the taking is sanctioned by a majority of the citizenry". To defend this position, Mankiw uses a theory of justice based on "just deserts". According to this perspective, people should receive compensation in proportion to their contributions. If the economy were described by a classical competitive equilibrium without externalities or public goods, then every individual would earn the value of his or her own marginal product, and there would be no need for government to redistribute. In this perspective, equity isperfectly aligned with the right incentives.
In a forthcoming article in the Journal of Economic Perspectives1, Harvard Professor and bestselling textbook author Greg Mankiw defends the income earned by the richest 1%, as opposed to the movement of the 99% that attacks the explosion of inequality and the concentration of income and wealth. Mankiw cites the study by Thomas Piketty and Emmanuel Saez (2003, updated 2011)2, which shows that in the United States the share of income earned by the richest 1% rose from 7.7% in 1973 to17.4% in 2010. Mankiw argues that the income received by the 1% is fair and denounces the idea of taxing them at what he considers confiscatory rates. He criticizes in particular the proposal of French President François Hollande to tax high income at a marginal rate of 75%, in the following terms: "using the force of government to seize such a large share of the fruits of someone else's labor is unjust, even if the taking is sanctioned by a majority of the citizenry". To defend this position, Mankiw uses a theory of justice based on "just deserts". According to this perspective, people should receive compensation in proportion to their contributions. If the economy were described by a classical competitive equilibrium without externalities or public goods, then every individual would earn the value of his or her own marginal product, and there would be no need for government to redistribute. In this perspective, equity isperfectly aligned with the right incentives.
This article explores the determinants of working poverty in the European Union. At the individual and household level, the factors contributing to working poverty differ in importance across countries. Nonetheless, being a lone parent, having low education, having a temporary contract, working part-time or less than full-year, appear to be the most important risk factors. Low pay, under-employment and family structures combine to explain working poverty. At the national level, the correlation between poverty and in-work poverty is strong: countries with low levels of in-work poverty are also the ones which keep overall poverty low. At this level there does not appear to be a dilemma between fighting in-work poverty and overall poverty. The strongest determinant contribution to low in-work poverty is high social spending as a proportion of GDP. The level of spending is more important than the way the spending is done or financed: both the social democratic and the social assurance regimes have good performances in terms of in-work poverty. Women's employment rate, which is generally viewed as being a factor in keeping in-work poverty low, is no more significant when level of social spending is taken into account. This underlines the ambiguous effect of employment on in-work poverty: employment can lift households out of poverty but it can also increase the number of poor workers.
