Established from the beginning of the 1990s, policies aimed at reducing the cost of the work have ceased to be in doubt as they gained momentum. By the time a new study comes, once again, issued strong reservations on the effectiveness of the tax credit for competitiveness and employment (CICE), the balance sheet controversial reductions in overall expenses led to ask the following question : should we continue to inject billions of euros, while the unemployment concerns in small steps, while at high thresholds, compared to many other countries of the european Union ?
The financial effort devoted to these devices is, indeed, far from being negligible. According to a study by Dares, the research branch of the ministry of labour, “general exemptions” of charge in favour of the employment have reached at 45.4 billion euros in 2015, “or 16.4 % more” than the previous year. A progression, “largely” due to the implementation of the pact of responsibility : launched under the five-year term of François Hollande, it provides a variety of security concessions that allow, in fine, to companies not to pay any contribution to social Security when their employees are ” at the level of the minimum wage “.
If they are centred on the remuneration low, contribution holidays can create jobs for people with few or no qualifications, ” says economist Bertrand Martinot, also former head of the general Delegation for employment and vocational training. They may, as such, be seen as an example of a “politics of redistribution, fair and efficient,” he adds.
The relief measures decided by the governments of Balladur (1993-1995) and Raffarin (2002-2005), which focused initially on wages of between 1.1 to 1.2 times the minimum wage in the first case, and up to 1.3 smic in the second,…