One of the benefits of our lifetime technical support package for the Global Economy course is an occasional refresher. Today’s topic: jobs in France.
First some background. The evidence tells us that the primary factor governing the unemployment rate is the rate at which people find new jobs, not the rate at which they lose them. If you’re interested in the details, see these slides by Rob Shimer.
Now consider the campaign proposal from France’s new President Francois Hollande to “impose financial penalties on profitable firms that announce layoffs” [quote from here, not Hollande's words]. Related links here and here.
Your assignment: Will Hollande’s proposal raise or lower the rate at which firms hire new workers? Overall employment and unemployment? Why?
Extra credit: Which country produces more unintentional comedy, France or Argentina? Give examples.
Please post your answers in the comment section below.