Report
Patrick Artus

Increasing wages in France?

The tax cuts and the measures in favour of pensioners that have been announced in France are visibly not sufficient to reduce the social tension and the discontent in a majority of the population. The main demand is a significant increase in wages. Can wages - and low wages in particular - be increased in France ? It is claimed that such an increase in low wages would boost demand and growth, but economists must have the courage to repeat that: All available studies show that an increase in the minimum wage in France would have a very negative effect on low-skilled employment; An increase in the cost of services (where wages are low ) would have a significant negative effect on the cost competitiveness of French industry, which is a large consumer of services, and which continues to lose market shares and to contract, which shows that there is a supply problem and no t a demand problem in industry.
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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