France's key problem: The missing 10 percentage points of GDP caused by the low employment rate

We believe France's economic and social problems are mainly due to one problem: the abnormally low level of the employment rate, which has led to an abnormally low level of GDP, and which can largely be explained by the low level of labour force skills in France. If the employment rate was at a normal level in France, thanks to a fall in structural unemployment combined with a rise in the participation rate, GDP would be 10 % higher (at unchanged capital), it would be possible to increase government transfer payments and cut tax rates, thanks to the increase in tax revenues; the additional supply of goods and services would lead to an external surplus and enable faster wage increase s .