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This research provides insights into the evolving French labor market from 2000 to 2017, highlighting rising precariousness and inequality. Spatial and hourly wage disparities, alongside the increasing prevalence of on-demand work, challenge traditional labor dynamics. The shift towards micro-entrepreneurship and its impact on income distribution are examined, shedding light on the complexities of the modern workforce. Despite social protections like unemployment insurance, inequality persists, revealing systemic challenges in the French economy.
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CC By Gilets Jaunes: A labour marketview Philippe Askenazy (CNRS-CMH-ENS) Ph Askenazy et B. Palier, 2018 “France: rising precariousness supported by the welfare state”, chap. 6 in B. Nolan (ed.) Inequality and Inclusive Growth, Oxford University Press: Oxford. Ph. Askenazy, 2018, “The changing of the French labor market, 2000–2017”, IZA World of Labor, N° 412.
France: stability of the labour share = no apparent decoupling Fig. 1: Labour share in non-financial corporations 1990-2017 (own estimations using INSEE NA). In % Caution: transfer pricing; distributed income of corporations from abroad jumped from 0.6% of Gross VA in 1995 to 3.3% in 2017.
Hourly wage inequality seems also globally flat: Tab 1.: Quartile/decile hourly wage ratios. Private workers (excluding interns, employees of households). 1995-2014 (Own estimations using DADS) BUT other dimensions reveal a crumbling working-class
Spatial inequalities are rising Fig. 2: Changes in local unemployment rate vs. initial rate, Q1 2008/Q1 2017. 304 metropolitan employment zones MPselected in 2017 Perpignan: far-right Porto-Vecchio: corsicannationalist
On-demand salaried workers • On-demand salaried workers Fig. 3: Number of private contracts signed each quarter by duration 2000-Q1-2018-Q3. Source: Acoss
Most of the new recruitments are now for less than one month, a majority a week or less! Rehiring jumped from 30% in 2000 to 60% in the 2010s (private sector, excluding temp agencies and specific regime of spectacles) From a logic of optimized matching, stepping stones… to a logic of cost cutting and transfer of business volatility to the workers Suggestive workplace level evidences: the positive correlation between the share of non-permanent workers and labour productivity in the early 2000 has vanished; now correlated with profits
=> Increasing inequality despite unemployment insurance. Tab. 3: Yearly gross wages + unemployment benefits - social contributions. All salaried workers. 2008-2015. In 2015 Euros Source: INSEE, new inequality indexes. Own corrections for a break in 2012.
L • On-demand entrepreneurs • On-demand entrepreneurs New status of micro-entrepreneurs in 2009 Face no-administrative requirements Do not have to belong to a professional corporation Flat and low social and fiscal taxes Significant “success”: currently around 3% of French workers(NB: one third cumulate a salaried job). Massive substitution: classic entrepreneurs = > - 1 point Externalization of salaried jobs Magnified by the development of on-demand platforms
=> Rising inequality among entrepreneurs Mono-active micro-entrepreneurs earn on average around 6000 Euros... yearly Interquartile ratio of gross income among classic entrepreneurs = 4 When micro-entrepreneurs are included ~ 8!
=> falling average income Fig. 4: Non-salaried employment, total hours worked, and mixed income of unincorporated enterprises, 2005-2015. Base 1 = 2007 (own estimations using INSEE NA). In %
L • On-demand entrepreneurs • Young workers and children • Young workers and children
