Que peut-on attendre de la Prime d' Activité ?
Abstract
In 2016, a "Work bonus'' should replace the French earned income tax credit (PPE) and the in-work benefit (RSA activité). For this occasion, I take stock of what we know about low-income policies in France and what we can expect from the reform. Will the "Work Bonus" be an efficient scheme to maintain work incentives and reduce poverty among fragile populations (single parents, young workers)? Will it reach a more reasonable take-up rate than the "RSA activité" (only 32%)? Could it be combined with a modulation of the minimum wage with age in order to reduce unemployment among young workers? I will attempt to shed light on these crucial questions.