How can the lowest wages be increased in France?

We begin by comparing the per capita wage and per capita value added in the various sectors: “domestic” services ( where the lowest-wage jobs are found ), business services, financial services, manufacturing industry and construction. The level of wages relative to value added is not abnormally low in domestic services. Ceteris paribus , wages therefore cannot be increased in “domestic” (unsophisticated) services by skewing income distribution. There remains another possibility: increasing the relative price of domestic services in relation to other goods and services, which would make it possible to increase the low wages paid in this sector , without increasing its real wages , and to increase the purchasing power of domestic service wage earners . This higher valuation of domestic services would nevertheless have drawbacks: A tax on companies and wage earners in other sectors; Factors of production would be attracted to unsophisticated services (a case of “Dutch disease”).