Report
Patrick Artus

In what way must the French “work more”?

From time to time it is claimed that the French are going to have to work more to mend the country’s economy. But in what way must the y work more? Weekly working time is no longer an issue, thanks to the flexibility that has been introduced in companies; annual working time in France is short but difficult to adjust; Working time over life raises the question of how much money society is willing to spend on public pensions. It is well known that an increase in the retirement age would generate very useful fiscal leeway, but it is also well known that it is unpopular; The employment rate remains by far the most important issue. France’s low employment rate (only a small share of which is explained by the low retirement age) explains the high level of income inequality before redistribution, the low per capita income and tax revenues and the high level of the tax burden. The priority in France should therefore be to work more collectively (to increase the employment rate) ahead of working more individually. The retirement age is an issue primarily because the employment rate among over-60s is low.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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