Added worker effect revisited through the French working time reduction experiment

This paper studies the impact of the French working time reduction experiment on the family labour supply. I expanded on the conventional added worker effect in order to analyse successively the effect of the ''35 hours'' on two dimensions of the spouse's labour supply: the probability to participate in the labour market and the working hours. Econometric tests are carried out on 10 000 couples drawn from the French EMPLOI survey of the INSEE. In the first estimation using Heckman's and Cogan's fixed costs frameworks, I found that working time reduction reduces the spouse's working hours when he (she) works. In the second one, using a multivariate probit analysis, I found that it increases the spouse's probability to join the labour force when he (she) was outside of the labour market in the previous period.added worker effect; family labour supply; fixed costs; multivariate probit; simultaneous equations; Working time reduction

Impact des 35 heures sur l'instauration de l'annualisation/modulation

Working Paper du GATE 2001-19Since 1982, to improve the labour flexibility the French labour legislation allows firms to modify the standard workplace organisation of their employees. Under given conditions, the firms have the opportunity to introduce variability in the every day working time if the annual working time stay equal or less than the legal working time. This new organisation is called : working time " annualisation ". The aim of this paper is to point out the main determinants of firm with WRT agreement's workplace organisational. The theoretical part of the paper present a simple organisational choice framework based on profit maximisation. The target is to deal simultaneously with flexibility choice behaviour and a collective bargaining between employers and employees over wages and workplace. This theoretical framework is tested using French firms individual data based on a match between REPONSE 98 survey and administrative survey of Robien and Aubry agreements.La modulation/annualisation du temps de travail est un mode organisationnel qui offre la possibilité d'adapter le rythme de travail à celui de la demande. Toutefois, ce mode de flexibilité interne caractérise principalement les entreprises signataires d'un accord Robien et Aubry. L'objectif de cet article est d'étudier quels sont les déterminants de ce choix organisationnel pour les établissements qui se sont engagés dans un dispositif incitatif de réduction du temps de travail. Le cadre théorique retenu vise à d'intégrer simultanément le choix organisationnel des entreprises en vue de s'adapter au mieux aux variations de la demande et le processus de négociation salariale entre l'employeur et les salariés lié à ce changement organisationnel. Ce modèle est testé à l'aide de données d'établissements français issues de l'appariement de l'enquête REPONSE 98 et des fichiers administratifs sur les conventions Robien et Aubry

Added worker effect revisited through the French working time reduction experiment

Working Paper du GATE 2002-09This paper studies the impact of the French working time reduction experiment on the family labour supply. I expanded on the conventional added worker effect in order to analyse successively the effect of the ''35 hours'' on two dimensions of the spouse's labour supply: the probability to participate in the labour market and the working hours. Econometric tests are carried out on 10 000 couples drawn from the French EMPLOI survey of the INSEE. In the first estimation using Heckman's and Cogan's fixed costs frameworks, I found that working time reduction reduces the spouse's working hours when he (she) works. In the second one, using a multivariate probit analysis, I found that it increases the spouse's probability to join the labour force when he (she) was outside of the labour market in the previous period.Cet article, qui s'inscrit dans la lignée des travaux sur l'effet d'un travailleur additionnel, étudie l'évolution de l'offre de travail familiale consécutive à la diffusion des 35 heures en s'appuyant sur un échantillon original de plus de 10 000 couples issu de l'enquête EMPLOI 2000. Deux dimensions de l'offre de travail de l'individu sont étudiées successivement lorsque son conjoint est affecté par la réduction du temps de travail : l'intensité de la participation au marché du travail et la décision de passer du statut d'inactif à celui d'actif

Earning Inequalities Between and Within Nests: A Multilevel Modeling Approach Applied to the Case of France

This paper presents a simultaneously study of the impact of gender and localization inequalities on the earnings of under-graduates. Using multilevel modeling, the framework draws both individual-level (i.e., pertaining to the individual elements of groups) and aggregate-level (i.e., pertaining to the group as a whole) data under a single specification, in order to study their potential interactions. These inequalities are studied with respect to young workers who left higher education in 2004 and who had a full-time job in the private sector three years after graduation (i.e., in 2007). To take into account the process of selection for employment, our multilevel model uses the Heckman two-step procedure. Following this approach, Occupational Groups (OG) are found to capture 59.4% of the earning heterogeneity whereas Employment Area (EA) nests capture 7.6%. This 59.4% figure is explained by two phenomena: (i) OG are dominated by seniors, and (ii) OG are dominated by males with higher earnings. These group characteristics also influence gender inequalities: there is a higher wage penalty for females in (i) OG dominated by males, and (ii) OG dominated by senior workers. In contrast to the gender gap, immigrant inequalities manifest closer links to EA. Policy implications are derived from our results.Multilevel Models, Earnings, Gender Inequality, Local Labor Market

Incentive Schemes and Determinants for Recruitment by Firms on the Shorter Working Week

Two categories of establishments can be identified among those that made the transition to the 35-hour working week in late 2000: the establishments that signed a Robien or Aubry 1 agreement and received incentive scheme assistance and those that switched to 35 hours without obtaining this assistance, but benefited from the lower payroll charges provided for by the Aubry 2 mechanism. The proposed analysis sets out to identify the determinants for job creations in these two categories of establishments that implemented the shorter working week. It is based on detailed data taken from the 2001 Passages (Transitions) survey conducted by DARES (Directorate for the Coordination of Research, Studies and Statistics) and the BVA institute. The Passages survey reports that the staff of establishments receiving incentive scheme assistance rose by over 10% as opposed to 4% for the others.Work-Sharing, Job Creations, Endogenous Switching Models, Oaxaca Procedure

The effect of social security payroll tax reductions on employment and wages: an evaluation of the 2003 French reform

public policy evaluation, payroll tax cuts, labour cost, semi-parametric estimations

Les déterminants des embauches des établissements à 35 heures : aides incitatives, effet de sélection et modalités de mise en oeuvre

Working Paper du GATE 2002-10Among 35-hour firms, those which benefit from social tax cuts of Aubry and Robien laws have increased their staff more than the others. The observed employment gap is up to 5,7 points between both kinds of firms. However, these two kinds of firms differ by the date and their attitudes toward shorter working hours implementation. The aim of this article is to point out the 35-hour firms' determinants of job creations using French firms individual data based on the PASSAGES survey carried out in 2001 by DARES. An endogenous switching framework is used to take into account the process to benefit of social tax cuts. We measure and determine the adjusted employment differential using the Oaxaca procedure. We found that 44 \% of the unadjusted employment gap between firms who benefit of social tax cuts and the others can be explain by the firms' attitude toward shorter working hours.Parmi les établissements à 35 heures, ceux ayant obtenu des aides incitatives ont davantage créé d'emplois que les autres. L'écart moyen du volume d'embauche de ces deux catégories est de plus de 5,7 points. Toutefois, ces établissements diffèrent selon la date et les modalités de mise en oeuvre de la RTT. Cet article propose d'identifier, à l'aide d'un modèle de sélection endogène, les déterminants des créations d'emplois, pour ces deux catégories d'établissements, en s'appuyant sur des données de l'enquête PASSAGES réalisée en 2001 par la DARES. Un écart de créations d'emplois ajusté des modalités observées de mise en oeuvre de la RTT est ensuite calculé à l'aide de la procédure d'Oaxaca. Il apparaît que 44 \% du différentiel d'embauches observé s'expliquent par les modalités différentes d'application des 35 heures

Les déterminants des embauches des établissements à 35 heures : aides incitatives, effet de sélection et modalités de mise en oeuvre

Parmi les établissements à 35 heures, ceux ayant obtenu des aides incitatives ont davantage créé d'emplois que les autres. L'écart moyen du volume d'embauche de ces deux catégories est de plus de 5,7 points. Toutefois, ces établissements diffèrent selon la date et les modalités de mise en oeuvre de la RTT. Cet article propose d'identifier, à l'aide d'un modèle de sélection endogène, les déterminants des créations d'emplois, pour ces deux catégories d'établissements, en s'appuyant sur des données de l'enquête PASSAGES réalisée en 2001 par la DARES. Un écart de créations d'emplois ajusté des modalités observées de mise en oeuvre de la RTT est ensuite calculé à l'aide de la procédure d'Oaxaca. Il apparaît que 44 \% du différentiel d'embauches observé s'expliquent par les modalités différentes d'application des 35 heures.création d'emplois; procédure d'Oaxaca; sélection endogène; tournoi

Les entreprises à 35 heures ont-elles toutes intérêt à utiliser le dispositif de modulation/annualisation ?

The modulation/annualisation device is the most frequent 35-hour firms?organisational change. The aim of this paper is to point out the main determinants of such an organisational choice by using French firms individual data: the passages survey. Firms are assumed to be in an uncertain environment where organisational choice has a strategic value. The theoretical and empirical analysis show that modulation/annualisation organisational choice depends on the trade off between four elements: the demand volatility, the costs to sep up the modulation/annualisation device, the bargaining process and the competitors?organisational choices.

Les performances des entreprises selon leur situation à l'égard des 35 heures*

In order to lower unemployment, the French government decided in 1998 to reduce the working time to 35 hours a week for full time workers. This measure made the firms change their choices with respect to employment, labour duration and organisation, and production. This article evaluates ex post effects of these different choices on firms performance. A more than 100, 000 firms sample built from different datasets has therefore been designed. Firms?decision to shift to 35 hours is not the result of a random process. Effects related to the measure and to own firms growth caracteristics have therefore to be distinguished when considering firms performance evolution. The non parametric method to correct for selection bias allows it. Econometric results stress on the fact that the shift to 35 hours led to a significant employment increase of at least 5 points, without worsening firms economic situation as expected from many ex ante theoretical points of view.Working time reduction, firm performance, productivity, job creations, JEL L23, C34, C35