61. Economic Survey of France, 2005
- Publication Date:
- 06-2005
- Content Type:
- Policy Brief
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- France has high productivity per hour worked and a sophisticated social welfare system, but it also suffers from low labour force participation and high structural un employment. This poor labour market performance contributes to a persistent budget deficit which is exacerbating, rather than alleviating, the fiscal pressures arising from ageing. Rising public debt threatens fiscal sustainability. It is partly a result of insufficient public expenditure control an d insufficient public understanding of the need to meet long-run challenges as well as short-term targets. Aspects of the labour code designed to protect employees, and some aspects of the system of social transfers have had some unintended but perverse consequences leading to structurally high levels of unemployment and low participation rates. Dynamism and growth of activity and employment are held back by a lack of competition in a large number of service sectors.
- Topic:
- Development and Economics
- Political Geography:
- Europe and France