DP2394 | Youth Employment Policies In France

Publication Date

28/03/2000

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Abstract

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.