France is often expected to have more poor workers than Germany, yet this is not the case: Why?
Germany deregulated its labour market extensively in the early 2000s. This deregulation is mostly expected to have created poor workers in Germany , giving rise to higher inequality in Germany than in France due to its lower wages in services and construction. Yet even though wages in services and construction are lower in Germany than in France, income inequality before redistribution is higher in France than in Germany. This shows both that an erron eous view of the German model circulates in France, and that the main driver of inequality is a low employment rate, as can be observed in France, and not the creation of low-wage services jobs, as can be observed in Germany.