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• W1511857217 abstract "After weeks of massive demonstrations, the French government has backed down in the face of protests led by French students over changes in national labor law. The proposed changes would have allowed employers to fire workers under age 26 without reason, notice, or severance. The hope was that by making it easier to dismiss workers, employers would hire more workers and youth unemployment would fall. Of course, these conditions, known as at will, are standard for workers of all ages in the United States. Perhaps because we take these employment conditions for granted in the United States, the response in the U.S. media has been scathing. The New York Times Editorial Board has pronounced, for example, that French youth unemployment is “catastrophic” and that the “real threat” of the demonstrations is that the French government “may be dissuaded from attempting the broader social and economic reforms that France requires, both for its own future and for the future of the European Union.” A media consensus has emerged that French youth are stupendously misguided - they have no idea what their own interests are; they have an outdated, childlike dependence on the state for protection from the real world of market forces; and they are often simply lazy and prefer the dole to work. As for French unions, U.S. critics charge that they are merely being opportunistic – trying desperately to stem their descent into irrelevance. On closer examination, though, maybe there is something to the popular opposition. Large majorities of France opposed the change. Can such a large, highly educated population be so wrong? We suggest that there are three main reasons for American media pundits – and professional economists – to think twice before pronouncing on the ignorance, dependence, laziness, and opportunism of French workers. The first is that the French public probably has a much better grasp of the extent of the youth unemployment problem than is captured in official unemployment statistics. Because large shares of youth are enrolled in school and not employed, the unemployment-to-population measure is a better measure of the magnitude of the unemployment problem than the standard unemployment-to-labor force measure. Second, for youth, a larger employment rate should not be the sole criterion of a well-functioning labor market and social system, especially for 16-19 year olds. And third, the available economic evidence on the effects of employment protection regulations combined with the available of temporary (fixed contract) jobs for youth, strongly suggests that that the proposed change would have little or no effect on either employment opportunities or the unemployment rate for youth. We address each of these points in turn." @default.
• W1511857217 created "2016-06-24" @default.
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• W1511857217 date "2006-04-01" @default.
• W1511857217 modified "2023-09-27" @default.
• W1511857217 title "Employment Regulation and French Unemployment: Were the French Students Right After All?" @default.
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