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Guaranteed minimum income and unemployment duration in France

Author

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  • Antoine Terracol

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract
In this article, we use data from the European Community Household Panel to evaluate the impact of a French guaranteed income program, the RMI, on the hazard out of unemployment. Self-selection into the program is corrected using a multivariate duration model developed by [Abbring, J.H., van den Berg, G.J., 2003. The non-parametric identification of treatment effects in duration models. Econometrica 71 (5), 1491- 1517]. We find that RMI receipt has a strong negative impact during the first months of program participation, but that this disincentive effect quickly falls to insignificant levels after six months. Household structure also appears to be an important determinant of the importance of the adverse effect of program participation.

Suggested Citation

  • Antoine Terracol, 2009. "Guaranteed minimum income and unemployment duration in France," PSE-Ecole d'économie de Paris (Postprint) hal-00607219, HAL.
    • Handle: RePEc:hal:pseptp:hal-00607219
    DOI: 10.1016/j.labeco.2008.08.007
    Note: View the original document on HAL open archive server: https://hal.science/hal-00607219
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    Cited by:

    1. Olivier Bargain & Karina Doorley, 2009. "Caught in the Trap? The Disincentive Effect of Social Assistance," Working Papers 200906, School of Economics, University College Dublin.
    2. Etienne Wasmer, 2012. "Ex-ante and ex-post evaluation of the 1989 French welfare reform using a natural experiment : the 1908 social laws in Alsace-Moselle," 2012 Meeting Papers 478, Society for Economic Dynamics.
    3. Santiago Garganta & Joaquín Zentner, 2020. "Efecto de la Doble Escolaridad sobre la Participación Laboral Femenina en República Dominicana," Asociación Argentina de Economía Política: Working Papers 4348, Asociación Argentina de Economía Política.
    4. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h48202h1n is not listed on IDEAS
    5. Locks, Gedeão & Thuilliez, Josselin, 2023. "The impact of minimum income on homelessness: Evidence from France," Journal of Urban Economics, Elsevier, vol. 135(C).
    6. Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Florent Fremigacci & Antoine Terracol, 2013. "Subsidized temporary jobs: lock-in and stepping stone effects," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4719-4732, November.
    8. Matthieu Chemin & Etienne Wasmer, 2012. "Ex-ante and ex-post evaluation of the 1989 French welfare reform using a natural experiment : the 1908 social laws in Alsace-Moselle," SciencePo Working papers hal-03234843, HAL.
    9. Ivana Malá & Adam Èabla, 2022. "Modelling of the Unemployment Duration in the Czech Republic Based on Aggregated Complete and Individual Censored Data," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(2), pages 171-187, January.
    10. Tomi Kyyrä & Ralf Wilke, 2014. "On the reliability of retrospective unemployment information in European household panel data," Empirical Economics, Springer, vol. 46(4), pages 1473-1493, June.
    11. repec:hal:journl:hal-03234843 is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h48202h1n is not listed on IDEAS
    13. Santiago Garganta & Leonardo Gasparini & Mariana Marchionni, 2017. "Cash transfers and female labor force participation: the case of AUH in Argentina," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.

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