Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/127459 
Year of Publication: 
2015
Citation: 
[Journal:] IZA Journal of European Labor Studies [ISSN:] 2193-9012 [Volume:] 4 [Issue:] 17 [Publisher:] Springer [Place:] Heidelberg [Year:] 2015 [Pages:] 1-20
Publisher: 
Springer, Heidelberg
Abstract: 
This paper aims to investigate the effects of the introduction of an active welfare state measure in France, the Revenu de Solidarité Active, which replaced the old system of social minima. By using a micro-macro simulation model, we characterize the effects on households' disposable income, labor supply, wages, GDP, public deficit, and other micro and macroeconomic aspects. Our findings suggest that although increasing public expenditure, the reform largely repays its cost by reducing involuntary unemployment, increasing labor supply and private consumption and thus improves GDP and the deficit/GDP ratio. If the great recession did not occur, poverty and inequality would have been significantly reduced by the RSA reform.
Subjects: 
Revenue de Solidarité active
RSA
Active welfare state
Microsimulation
CGE
Micro-macro
Labour supply
Policy evaluation
JEL: 
I38
C63
C68
J22
H31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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