Post on 23-Dec-2015
6th 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
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Hours
Total gross cost
There are two main elements:- The social policy component- The employment policy component
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Deadweight effect = fixed cost
Withourt public support:30% of formal jobs / 70% of undeclared jobsIf today, we have puiblic support then70% of formal jobs / 30% of undeclared jobs
30% = +/- 40% of 70%
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Total net cost (all policies)
= Gross cost – gross revenue
Or
Gross cost – gross direct feedback
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Indirect feedback
€
HoursNet cost of Employment policy
% support = % tax wedge>
<
Net cost of social policy
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Total real net cost
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Total real net cost
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Total Gross cost
€ / job€
Hours
Net cost by job created
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,…
Thank you for your attention