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The reduction in labour supply because of the scheme is equivalent to some 400,000 full-time employees.Such schemes cannot last for ever.
We would highlight the relaxed depreciation policies (which reduces earnings quality) and the big reduction in labour intensity, in line with trends seen at Sainsbury and Tesco in recent years (which limits the scope for future cost cutting).
This, said Mr Ayrault, would add up to a 6% reduction in labour costs, paid for by a small rise in VAT rates and an extra €10 billion in public-spending cuts.
The reduction in labour taxes is a widespread policy recommendation for raising employment (see, for instance, the seminal reports from the European Commission 1994; OECD 1994).
The reduction in labour availability has been driven by an ongoing process involving the settlement of household members in nearby villages or towns.
That said, the more pessimistic message of our analyses is that these initiatives have (so far) failed to produce a noticeable reduction in labour market segmentation a best practice case is difficult to find.
Similar(47)
A properly justified automation project will increase productivity owing to increases in production rate and reductions in labour content.
Its policies include cutting taxes, opposing climate change regulations, advocating reductions in labour protections and the minimum wage, privatising education, restricting voter rights and lobbying for the tobacco industry.
The minutes say: The weakness of wages in the face of strong rises in employment was becoming more striking, and there was reason to believe both that reductions in labour market slack were taking longer to affect wage growth, and that the effective supply of labour had increased.
OPTIFROP showed that, through introduction of alternative crops, substantial reductions in labour peaks in the period November April could be achieved with a relatively small reduction in farm income.
Unless the additional labour supply and work effort forthcoming from the latter outweighs the reductions in labour supply and work effort supplied by the former, it is unclear whether UC will produce a positive benefit-cost ratio.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com