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[eng] This study looks at incentives to work in France, measured using effective marginal tax rates (at the intensive margin) and effective participation tax rates (at the extensive margin). These show the proportion of an increase in earned income captured by the tax benefit system, either because the taxes increase or because the benefits decrease. They are calculated using microsimulation based on the Insee survey Revenus fiscaux et sociaux. Between 1998 and 2014, incentives to work at the intensive margin rose for very low incomes, and then decrease as incomes rise. Incentives at the extensive margin rose in the first third of the distribution. The profile of the marginal rates changed from a U to a tilde shape. Incentives to work are lower for single people than for couples, but there is very little difference in incentive to work between men and women, except at the top of the distribution, to the detriment of married women.

Financial Incentives to Work in France between 1998 and 2014