In this article, we study the impact of payroll tax subsidies for low-wage workers on various outcomes of the firms, including employment, in particular that of young and less skilled workers. We concentrate on the effects of the 1995 and 1996 tax cuts policies, which permit large decreases in...

At the beginning of the nineties labor productivity in France slowed down strongly. Yearly labor productivity (per worker) growth in the non-farm business sector fell from 2% during the 1982-1992 period to 0.7% between 1993 and 2000. This productivity slowdown seems to have stimulated...