Toward employment : French examples By Martin Hirsch, Former High Commissionner for youth policies and anti poverty programms President of the Agency for Civic Service Siem Reap, ILO meeting, may 1

French social context (1) A comprehensive social protection system (universal health insurance; minimum income; numerous family allowances; generous pensions) Large range of public services including free education, access to university without fees Very high level of social expenditures (about one third of national wealth) But… 2

French social context (2) A quite high level of unemployement (around 10% of the active population) 12% of the population living under the poverty threshold (≤ 900€/per month for one single personne) Increasing deficits and increasing social expenditures over the last past years 3

The youth situation (1) High level of unemployment in the youth population Many precarious jobs Almost 20% of the youth under the poverty threshold A very pessimistic feeling among the youth about future 4

The youth population (2) Acute difficulties for young people living in the suburbs Massive difficulties for young people from immigrant families 15% of the young population without a degree 5

Youth policies A shared responsability between the governement and local authorities A demand for « autonomy » About 50 billions euros of public expenses for the youth (education, family allowances, tax credits) Under 25 y.o., no right to a minimum income except for specific cases. 6

The idea of experimentation Select the most cost/effective solutions Convince that it’s possible to improve the situation Involve all stakeholders at the local and national levels Avoid to add benefits without increasing the level of employment and the level of qualification Avoid ideological endless battles 7

The idea of experimentation in french public policies A new concept A change in the constitutionnal law in order to authorize experimentations (2003) without any implementation before 2007 The major part of politicians reluctant to the idea No specific financing 8

ConcertationIdeas of reforms Design of experimentations with scientists Call for projects Financing and implementation of programms Evaluation of the results Generalisation Evaluation on the impact on the population 9

Organisation of experimentations since 2009 Principle acted by law Budget of 150 millions euros Additionnal private contributions of 50 million € Management commission with all ministers, local authorities, donors Scientific comity Call for projects on specific themes 300 projects are selected 30% of the budget for evaluation 10

Examples of tested issues How to reduce the proportion of student who give up on their studies without a degree? Impact of financing the driving licence on job market insertion? Should young people go through a volunteering period in order to increase their chance of finding a job? Free access to care: overconsumption or better prevention? Efficiency of boarding school with reinforced support How to reduce discrimination towards young migrant people? 11

Voluntary civic service On the agenda since the suppression of the military service; a very specific status ; A great success on a voluntary basis : many applicants; One tool, many purposes : to foster engagement, support non-for-profit projects, increase employability, mix young people from different backgrounds, give a first experience, convey social and civic values, etc… 12

Voluntary civic service Useful for different public policies : reducing school drop-out, youth employment policy, social policies, support to civil society, ageing policy, etc… Evidence of improved youth employment: After 6 month, 75% have a job or are engaged in a training program Target : 15% of each generation 13

Revenu de solidarité active One tool, two purposes: improving the total income of low paid workers without increasing labor cost; ensuring that people receive at least the social minimum income for their work In a country with a minimum income and a minimum wage (minimal income is an allowance equivalent to 50% of the monthly minimum wage) 14

Revenu de solidarite active Minimum income and additionnal benefit for low paid workers Close to a negative income tax credit system : The amount of the allowance depends on the family situation (number of children) and the level of wage Calculation: if the wage increases by 100, the allowance is reduced by 42 15

Revenu de solidarite active Tested in different areas before implementation Return on investment: if it increases the proportion of jobless people going back to work, the additionnal benefit is financed by the saving on the allowance for non workers Complexity makes implementation still difficult Some poverty and unemployment traps still remain 16