The Effects of Reduced Social Security Contributions on Employment: An Evaluation of the 2003 French Reform*

摘要: In 2003, the French government decided to reform system managing different minimum wage regulations and targeted reductions employers' social security contributions. The main objective of was simplify complex that were created by progressive introduction 35-hour week. incidentally large variations in labour costs, depending on type firm level within firm. This paper presents an evaluation impact this employment using a balanced panel firms with more than five employees, drawn from matching between several administrative data sources 2000 2005. both types firm, significant elasticities can be found respect costs have expected signs: rise 1% average reduces 0.4%. As majority remained 39-hour week received greater reductions, Fillon allowed them raise their employment. Firms adopted experienced opposite: led fall Ultimately, has had no clear effect aggregate employment, measured either job numbers or full-time equivalents (FTE).