1. 6 th European Conference on PHS WLB and PHS: what are the impacts of recession and austerity The cost-effectiveness of PHS policy : A theoretical framework Jean-François LEBRUN Project Director, Directorate-General of the Treasury, Ministry of Finance, France Advisor, Employment policy, European Commission

2. € Hours Total gross cost There are two main elements: -The social policy component -The employment policy component

3. € Hours Deadweight effect = fixed cost Withourt public support: 30% of formal jobs / 70% of undeclared jobs If today, we have puiblic support then 70% of formal jobs / 30% of undeclared jobs 30% = +/- 40% of 70%

4. € Hours Total net cost (all policies) = Gross cost – gross revenue Or Gross cost – gross direct feedback

5. € Hours Indirect feedback

6. € Hours Net cost of Employment policy % support = % tax wedge > <

7. Net cost of social policy € Hours

8. Total real net cost € Hours

9. Total real net cost € Hours Total Gross cost

10. € / job € Hours Net cost by job created

11. My preliminary conclusions: -The gross cost of PHS policies is high -The real net cost of PHS policies is strongly reduced by the feedbacks -The feedbacks are dependent of assumptions -The net cost of employment policy is close to zero if the rate of intervention is close to the rate of tax wedge -The net cost of social policy dependent of the level of solidarity chosen by the population -The cost by job created in this sector seems less expensive in comparison with other policies -There are important needs especially in line with the work life balance and the elderly care -Other aspects must be taken on board: quality, education, skills, career, recruitment, new technologies, informal carers,…

12. Thank you for your attention