Housing Benefits and Monetary Incentives to Work: Simulations for France

Abstract

The opinions and analyses in this article are those of the author(s) and do not necessarily reflect their institution's or Insee's views. 1. The statistical department of the Ministry of Social Affairs and Health. EMTR Disposable income Gross income Disposable income Disposable income: after rebate on CSG if gross income below 1.3 times minimum wage Disposable income: after abolition of housing benefit Effective marginal tax rate Effective marginal tax rate: after rebate on CSG if gross income below 1.3 times minimum wage Effective marginal tax rate: after abolition of housing benefit

The Impact of the ‘Scellier’ Income Tax Relief on Building Land Prices in France

“…Housing allowances therefore do not help to reduce financial difficulties for those experiencing job loss. Ferey (2018) shows that housing subsidies also do not encourage people to return to work, due to the substitutability of unemployment benefits and means-tested benefits. Finally, they introduce significant disparities between households with similar incomes.…”