Is the German strategy applicable to France?
1 : Lille - Economie et Management
(LEM)
-
Website
CNRS : UMR9221, Université Lille I - Sciences et technologies
Université Lille 1 Cité Scientifique 59655 Villeneuve d'Ascq Cedex -
France
2 : Chaire Transitions Démographiques Transitions Economiques
(Chaire TDTE)
-
Website
Chaire Transitions Démographiques Transitions Economiques
3 : Laboratoire d'économie et de management de Nantes Atlantique
(LEMNA)
-
Website
Université de Nantes : EA4272
This article questions the consequences for France of a policy that would replicate the German experience since the mid-2000s and addresses the possibility of alternative strategies. Utilising the CGE model built by Beissinger et al. (2016), we implement a series of simulations to analyse the impacts (i) of a German-type labour market reform, and (ii) of a policy which stimulates the demand for non-tradable services. We show (i) that structural differences could make a German-type policy less efficient and more painful (in terms of inequality) in France, and (ii) that a public action which directly targets the demand for non-tradable services could provide an alternative policy.