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2005 OECD Economic Surveys: France 2005

image of OECD Economic Surveys: France 2005

This 2005 OECD Economic Survey of France focuses on three key challenges faced by France: making the fiscal system sustainable, improving labour market performance, and product market competition. The chapter on the fiscal system includes annexes on ageing and health care expenditure and reforms to the health care system. The chapter on labour markets includes annexes showing the evolution of employment protection legislation and analysing collective bargaining reform of April 2004.

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Improving Labour Market Performance

With high unemployment, low participation of specific groups such as the lowskilled and those nearing retirement age, and relatively low average hours worked, France is far from using its full labour potential. Improving the labour market situation would not only increase living standards and growth potential but also reduce social exclusion and ease pressures on public spending. This chapter discusses the need for a comprehensive reform of the labour market aiming at: i) shifting the burden of social protection in the labour market away from employers towards the state by reducing and streamlining employment...

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