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A debate on the Employment Policies in the developed countries

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  1. The Molting snake
  2. A flight of wild geese
  3. Dancing with wolves
  4. The appetite of an ogre
  5. Crickets and ants
  6. A tiger in the engine
  7. Personal opinion

From an economic standpoint, it is possible to propose a classification of employment policies by objective intervention. This typology reflects the diversity of objectives and functions of different devices in order to judge their effectiveness. It leads to distinguishing between three types of measures acting respectively on: the supply of labor (the behavior of households), the demand for labor (firms) and the conditions for linking the supply and labor demand (that is, more generally,and on the functioning of the labor market, information flow, mobility, matching supply and demand of labor). The discussion then focuses on the merits and the relative effectiveness of policy measures in terms of employment and unemployment. There are many possible theoretical references which will be quoted here, without an exhaustive inventory.

The purpose of these devices is to reduce unemployment among older people by supporting the transition to retirement, and to facilitate the hiring of young people. Some devices, especially in the 1980s,subordinate, indeed, directly into the early retirement of hiring a young person.
The assertion of a goal of raising the participation rate and employment rate at European level has led many countries to restrict the use of early retirement, or even delete it and to develop measures of partial retirement (at part-time). The news is quite the contrary, the increase in activity, to help fund the retirement system division.

These measures of employment policy are stated with the objective of creating new jobs, primarily by engaging the lever of labor costs.
Such intervention may be general and structural, even if it seeks to affect some groups concerned by the problems of labor costs, such as less skilled: the French system of social security cuts on low wages have existed since 1993 and concern all companies and all workers whose wages are close to the SMIC (up to 1.3 SMIC initially 1.8 SMIC in the Aubry law). It can also be targeted at certain categories of companies (exemption first employee) and / or unemployed (long-term unemployed, young people). Two intervention techniques on the cost of labor coexist: the reductions in payroll taxes, the shortfall for social systems is normally compensated by the state budget, and grants or signing bonuses. The "zones" can be assimilated to this category of employment policies.

Another way to increase the level of employment in the economy is to finance jobs in the public sector or the voluntary sector. These are generally non-market jobs, to avoid competition with the private sector(local jobs, helping people, environmental projects, youth employment). The goal, in addition to creating new jobs for the unemployed is to perform functions that can not be assumed by the market, either because they are public goods, or because of low solvent demand (eg personal services).

In practice, these measures consist of temporary public employment (youth employment in France) or aid to recruitment conducted by associations, or aid -including tax - individuals. The principle of non-replacement of a staff of retiring age will of course work in the opposite direction,for budgetary reasons and suspicion of public sector efficiency.

Tags: Debate; employment policies; empoyment in developed countries ; classification of employment policies

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