Program > Papers by author > Mihoubi Ferhat

Tuesday 13
C9 - Miscellaneous II
Chair: Fabrice Gilles
› 10:15 - 10:40 (25min)
› Room 103 - B. Martinu
Massive tax credits, but very few employment effects: an ex post evaluation of the CICE in France
Fabrice Gilles  1, 2@  , Yannick L'horty  3, 4, *@  , Ferhat Mihoubi  5, *@  , Yang Xi  6, *@  
1 : Travail, emploi et politiques publiques  (TEPP (FR 3435))  -  Website
Travail, emploi et politiques publiques
2 : LEM-CNRS  (UMR 9221)
CNRS : UMR9221, Université Lille I - Sciences et technologies, Fédération Universitaire et Polytechnique de Lille
Université de Lille 1, Sciences et Technologies Faculté des Sciences Economiques et Sociales Bâtiment SH2 - Bureau 113 Cité Scientifique 59655 Villeneuve d'Ascq Cedex -  France
3 : Travail, Emploi et Politiques Publiques  (TEPP)  -  Website
CNRS : FR3435, Université Paris-Est Marne-la-Vallée (UPEMLV)
Université Paris Est
5 bd Descartes, 77454 Champs sur Marne  -  France
5 : Erudite  (Equipe de Recherche sur lUtilisation des Données Individuelles en lien avec la Théorie Economique)  -  Website
Université Paris Est-Créteil 61 avenue du Général de Gaulle 94010 Créteil Cedex France -  France
6 : EconomiX  -  Website
CNRS : UMR7166, Université Paris X - Paris Ouest Nanterre La Défense
Bat K 200 Avenue de la République 92001 NANTERRE CEDEX -  France
* : Corresponding author

The Crédit d'Impôt pour la Compétitivité et l'Emploi (CICE) (tax credit for competitiveness

and employment) is the most important employment measure of François Hollande's five-year

term with regard to the total amount as well as the number of employees and the number of

companies concerned. Representing an annual amount of more than 20 billion euros, i.e. almost

two GDP percentage points, the amount of this tax credit is 6% of the payroll of all companies

in 2014, for all wages that are equivalent to less than or equal to 2.5 minimum wages. To

evaluate the effects of this measure, we use an identification according to intensity of treatment

by comparing the job growth rate of companies that greatly benefited from the CICE to that of

companies of the first quartile, while controlling for a large number of structural variables and

instrumenting the apparent CICE rate by its simulated value before its implementation.

Estimates are based on a balanced sample of more than 130,000 companies with five employees

or more between 2009 and 2014. We found that the CICE has a positive but small effect on

employment, payroll, and company margins, a negative effect on average salaries, but no effect

on investment or productivity.

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