France 2017 OECD economic survey towards more inclusive growth and employment
http://www.oecd.org/eco/surveys/economic-survey-france.htm
2017 OECD ECONOMIC
SURVEY OF FRANCE
Towards more inclusive growth and employment
Paris, 14 September 2017
@OECD
(2)
•
A long-term strategy would help to reduce public
spending and improve its impact on equity
•
Fostering an inclusive development of skills and
employment
•
Improving life in poor neighbourhoods
•
Improving the efficiency of the health-care
(3)
Potential growth has slowed
3
Source : OECD (2017), OECD Econom ic Outlook 10 1 Database.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Capital per worker
Labour input
TFP
Potential growth
(4)
Too many people are excluded from the
labour market
Source: OECD (2016), OECD Education at a Glance 20 16 Database.
0
5
10
15
20
25
30
35
0
5
10
15
20
25
30
35
IS L NL D CH E LU X DE U SW E NO R JP N AU T DN K AU S CZ E ES T LV A CA N NZ L GBR BEL ISR FIN
US A O ECD SV N PR T PO L HU N IR L F R A SV K KO R CH L M EX ES P G
RC ITA TUR
Youths not in employment, education or training (NEET), 2015
% of the 15-29 population
(5)
Public spending is high
5
Per cent of GDP, 2016
Source : OECD (2017), OECD Econom ic Outlook 10 1 Database.
0
10
20
30
40
50
60
0
10
20
30
40
50
60
IR L CH E US A JP N CZ E ES T CA N O ECD PO L SV K GBR ESP NLD
DE U PR T SV N HU N EA 16 G
RC ITA
SW E AU T BE L DN K F IN F R A
(6)
D e ve lo p in g a lo n g-te rm s tra te gy
to re d u ce p u b lic s p e n d in g a n d
(7)
Without policy changes the debt-to-GDP is
set to increase further
7
Debt simulations (per cent of GDP)
Source: OECD calculations based on OECD (2017), OECD Econom ic Outlook 10 1 Database.
50
60
70
80
90
100
110
120
130
140
50
60
70
80
90
100
110
120
130
140
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
Business as usual¹
Higher interest rate² (+1.4% points)
(8)
Pension spending and the wage bill explain
most of the gap in public spending
1. Numbers may not add to totals because of rounding, overlapping across selected spending categories and non-universal coverage of all spending categories.
2. Excluding pre-primary education.
Source: OECD Econom ic Outlook 10 1 Database; OECD Social Expenditure Database (SOCX); OECD Education at a Glance 20 16 Database.
(9)
The average effective age of
labour-market exit is low
9
Average effective age of labour-market exit in 2014
11. The effective retirement age shown is for the five-year period 2009-2014. The official pension age is shown for 2014, assuming labour market entry at age 20.
2. Belgium introduced a certain number of measures in 2015 to raise the effective age of labour market exit, focusing on conditions for accessing early retirement.
Source : OECD (2015), OECD Pensions at a Glance 20 15, OECD Publishing, Paris.
Iceland
Men Women
Korea Mexico
Turkey Japan Chile Israel New Zealand
Portugal Switzerland United States
Ireland Australia
Sweden Norway
Spain
OECD
Canada United Kingdom
Estonia Czech Republic
Denmark Netherlands
Germany Hungary Slovenia Austria
Belgium²
France
Poland Luxembourg
Finland Italy Greece Slovak Republic
50 55 60 65 70 75
50 55
60 65
70 75
(10)
Corporate tax rates are high
Source: Oxford Centre for Business Taxation (2017), CBT Database.
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
40
IR L SV N CZ E PO L T U R CH E IS L F IN KO R G BR HU N NL D SV K SW E DN K IS R AU T O ECD NO R CA N ES T IT A LU X CH L PR T GRC NZL
M EX AU S DE U ES P BE L JP N F R A US A
Average effective corporate tax rates
Per cent, 2016
(11)
But corporate income tax revenues are low
11
Source: OECD (2017), OECD R ev enue Statistics Database.
0
1
2
3
4
5
0
1
2
3
4
5
SV N LV A T U R DE U PO L HU N GRC ITA EST FRA FIN USA AUT ESP GBR DNK IRL NLD
O ECD IS L SW E IS R CH E CA N PR T KO R M
EX BEL
SV K CZ E JP N LU X NZ L NO R AU S CH L
Corporate income tax revenues
(12)
The personal income tax represents a low
share of total tax revenues
1. 2014 for the OECD.
2. Including the contribution sociale généralisée.
Source: OECD (2017), OECD R ev enue Statistics Database.
Personal income tax², 18.9%
Corporate income
tax, 4.6 %
Social security contributions,
37.1 % Taxes on payroll
and workforce, 3.5 % Taxes
on property,
8.9 % Taxes on goods and
services, 24.4%
Other taxes, 2.7%
A. France
Personal income tax², 24.0%
Corporate income
tax, 8.8 % Social security contributions,
26.2 % Taxes on payroll
and workforce, 1.1 % Taxes
on property,
5.6 % Taxes on goods and
services, 32.6%
Other taxes, 1.8%
B. OECD
(13)
Exemptions and VAT tax breaks lead to a
substantial shortfall
13 1 Ratio between the actual value-added tax (VAT) revenue collected and the revenue that would theoretically be raised if VAT
was applied at the standard rate to all final consumption. It implicitly measures the share of potential tax revenues lost due to the existence of preferential tax treatments.
Source:OECD (2016), Consum ption Tax Trends 20 16: VAT/ GST and excise rates, trends and policy issues, OECD Publishing,
Paris.
VAT revenue ratio
1(%), 2014
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 M EX G
RC ITA ESP TUR POL
G
BR ISL BEL NLD SVK PRT ARF IRL AUS CAN LVA FIN DEU
O ECD NO R HU N SW E CZ E DN K AU T SV N CH L IS R KO R JP N ES T CH E NZ L LU X
(14)
Main recommendations to reduce public
spending and taxes
Meet the ambitious targets to reduce public spending and taxes
Move towards a single pension system to improve labour mobility and lower
management costs
Then, gradually increase the minimum retirement age in line with life expectancy
Lower social contribution rates and corporate income tax rates, as planned
Use lower social contributions as an opportunity to give a bigger role to the
progressive income tax, e.g. by lowering the basic allowance
Remove personal tax breaks on capital income, and lower the tax rate
(15)
Fostering an inclusive development
of skills and employment
(16)
Too many adults have weak basic skills
Source: OECD (2016), Skills M atter: Further R esults from the Surv ey of Adult Skills, OECD Skills Studies, OECD Publishing, Paris.
0 10 20 30 40 50 60 0 10 20 30 40 50 60 JP N F IN SV K NL D CZ E NZ L NO R AU S KO R ES T SW E BE L AU T DN K CA N G
BR IRL
US A DE U PO L O
ECD FR
A
SV
N
G
RC ISR ESP ITA TUR CHL
% %
Share of adults 16-65 scoring below level 2 in PIAAC's reading proficiency scale
(17)
Strengthen apprenticeships and public
employment services
17
Source: Ministère de l’Éducation nationale, DEPP.
0
50
100
150
200
250
300
0
50
100
150
200
250
300
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Number of apprentices with a low level of education
(18)
It is difficult to get a permanent contract
1. Employees on temporary contract in year t-1 but declaring having been hired on a permanent contract in year t.
Source : Eurostat.
0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 ES P F R A G
RC ITA POL
EU
28 FIN
PR T SV K DE U LU X HU N BG R SW E BE L NL D SV N CZ E IR L LT U NO R ES T AU T DN K IS L RO U LV A G BR
(19)
Unionisation is low
19
Source : OECD (2017), Labour Force Statistics Database.
0
10
20
30
40
50
60
70
80
90
0
10
20
30
40
50
60
70
80
90
ES T T U R F R A KO R HU N US A CZ E PO L SV K M EX AU S CH L CH E O ECD ES P JP N NL D DE U NZ L PR T SV N GRC ISR
G BR CA N IR L AU T LU X IT A NO R BE L DN K SW E F
IN ISL
Trade union density, 2014
Trade union members in per cent of employees, %
(20)
But the collective bargaining
coverage rate is very high
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
T
U
R
KO
R
US
A
M
EX
PO
L
LV
A
NZ
L
JP
N
CH
L
HU
N
ES
T
SV
K
IS
R
CA
N
G
BR
G
RC
O
ECD
CZ
E
CH
E
DE
U
LU
X
AU
S
SV
N
NO
R
PR
T
ES
P
IT
A
DN
K
NL
D
IS
L
SW
E
F
IN
BE
L
AU
T
F
R
A
Collective bargaining coverage rate, 2013
Per cent of all wage earners with right to bargaining
(21)
Main recommandations to foster an inclusive
development of skills
21
Simplify the personal training account (CPF), and reduce the number of similar
schemes
Improve information about providers by strengthening the quality label system
Develop apprenticeships in vocational lycées
Continuously evaluate active labour market policies
Introduce professional judges to guide lay assessors in labour courts
Merge inactive sectors and those that lack the critical mass for effective bargaining
Ensure that the extension procedure for sectoral agreements takes account of their
economic and social impacts, and authorise exemptions
Encourage sectoral agreements that are differentiated by the size or age of the
business, for example
Reduce the number of institutions that represent workers
(22)
Improving life in poor
neighbourhoods
(23)
Residents of poor neighbourhoods face
various social handicaps
23
1. Percentage point gap in the odds of unemployment for poor neighborhoods' residents versus residents of surrounding urban areas; employed native-born women aged 30 to 49 with a baccalauréat only are identified as the reference group. 2. Refers to post lower secondary education vocational qualifications such as: Certificat d’aptitude professionnelle (CAP) and Brev et d’études professionnelles (BEP)
Source : ONPV (2016), R apport annuel 20 15.
0 5 10 15 20 25 30
0 5 10 15 20 25 30
≤ Lower secondary Below upper secondary ² Upper secondary Tertiary
Poor neighbourhoods Surrounding urban areas
Likelihood of unemployment by place of residence and education
(24)
Reducing inequalities in educational
opportunities
1. Percentage variance in the PISA reading score for children aged 15 years explained by family environment (parents’ level of education
and income, social and occupational status, cultural possessions, books and education resources available at home).
Source: OECD (20 16), PISA 20 15 R esults (Vol. II): Excellen ce an d Equity in Education, OECD Publishing, Paris.
0 5 10 15 20 25 0 5 10 15 20 25 IS L NO R ES T CA N US A T U R G
BR LVA FIN
KO R IS R JP N DN K AU S IT A NL D SW E SV N NZ L M EX O
ECD GRC IR
L ES P PO L DE U CH E PR T CH L AU T SV K BE L F R A CZ E LU X HU N
(25)
Urban renewal needs a stronger focus on
well-being
(26)
Improving access to higher-quality housing
for the poor
1. The first income decile includes households with average annual income below EUR 8 0 0 0 , while the 10 th decile refers to households with average annual income above EUR 39 0 0 0 .
Source : INSEE, H ousin g Survey 20 13.
Housing tenure across households by income decile¹
Metropolitan France, primary residences, 2013
0
20
40
60
80
100
0
20
40
60
80
100
I
II
III
IV
V
VI
VII
VIII
IX
X
Total
Social rental dwellings
Market rented dwellings
Owner-occupied dwellings
Other
(27)
Main recommendations for improving life in
poor neighbourhoods
Continue awareness campaign for recruiters
Better target public spending at transportation, childcare services and
face-to-face public services in poor neighbourhoods
Offer attractive salaries and career prospects to excellent teachers in schools
with many pupils from disadvantaged backgrounds
Promote an innovative range of different practices in teacher training in order to
meet the different needs of pupils
Use urban renewal in poor neighbourhoods as an entry point to offer practical
training in firms and basic skills courses
Reduce registration fees, and increase taxes on immovable properties
Tighten obligations to pay higher rents and encourage occupants whose income
rises above the eligibility ceiling to move houses
(28)
Improving the efficiency of the
health-care system
(29)
Health-care quality is high
29
Source: Eurostat (2016), Am enable and Prev entable Deaths Statistics.
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
CH E F R A LU X NL D ES P NO R IT A BE L SW E DN K AU T IR L DE U F IN PR T G BR SV N G RC EU 28 PO L CZ E HR V SR B ES T SV K HU N BG R LT U RO U LV ADeaths avoidable through better health-care, 2014
Per 100 000 inhabitants
(30)
But expenditures are high and likely to
increase
Source: OECD (2017), OECD H ealth Statistics Database.
0 2 4 6 8 10 12
0 2 4 6 8 10 12
1990 1995 2000 2005 2010 2015
FRANCE Germany Italy Spain
Current health-care spending, 1990-2016
(31)
There is room to improve prevention
31
1. The scope of institutional spending is different from the entirety of spending on prevention in France, especially for ordinary consultations, which amount to 9.3 billion euros in 2014 according to Drees, i.e. 3.9% of health spending, compared to 2.0% in 2014 according to OECD figures.
Source : OECD (2017), OECD H ealth Statistics Database.
0 1 2 3 4 5 6 7
0 1 2 3 4 5 6 7
IS
R
G
RC BEL PRT AUS AFR ESP LVA SVK AUT LIS CHE LUX DNK HUN SVN POL IRL CZE JPN
O
ECD US
A
NO
R
DE
U
SW
E
ES
T
M
EX
KO
R
NL
D
FI
N
IT
A
G
BR
CA
N
Spending on prevention, 2015
(32)
Coordination between different care
providers is insufficient
Source : Drees (2017), Les établissem ents de santé – édition 20 17.
80
100
120
140
160
180
200
80
100
120
140
160
180
200
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Use of emergency departments
Population
Hospital emergency departments' use
(33)
Hospital expenditures are high
33
Source : OECD (2017), OECD H ealth Statistics database.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
LV A M EX CZ E KO R ES T PR T CA N IS R SV K HU N PO L ES P G BR SW E OECD FIN IR
L SV N IT A AU S NO R DN K BE L US A DE U NL D JP N CH E F R A G
RC AUT
In-patient curative and rehabilitative care, 2015
(34)
Developing the use of generics would cut
costs
Source : OECD (2017), OECD H ealth Statistics database.
0
10
20
30
40
50
60
70
80
90
0
10
20
30
40
50
60
70
80
90
LUX
ITA
GRC
CHE
FRA
BEL
IRL
PRT
ESP
AUT
TUR
DNK
SVK
NLD
NZL
DEU
GBR
Value
Volume
Use of generics, 2015
(35)
Main recommendations to improve the
efficiency of the health-care system
35
Increase health practitioners’ remuneration for prevention and complex chronic
diseases, which would help reduce the volume of treatments, prescriptions and
drug sales
Make it easier for insurers to contract with group practices
Develop electronic health records
Adjust the activity-based system for hospital funding (Diagnosis Related
Groups) to increase rewards for efficiency and quality for public and private
hospitals
Strengthen the autonomy of public hospital managers by allowing them to
develop their own human resource policies
Lower pharmaceutical spending by developing the use of generics, developing
targeted information for hospitals and primary-care providers to promote
appropriate prescribing and applying capped reimbursement amounts to a wider
range of drugs
(36)
For more information
Disclaimers:
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
http://www.oecd.org/eco/surveys/economic-survey-france.htm
@OECDeconomy
@OECD
(1)
There is room to improve prevention
1. The scope of institutional spending is different from the entirety of spending on prevention in France, especially for ordinary consultations, which amount to 9.3 billion euros in 2014 according to Drees, i.e. 3.9% of health spending, compared to 2.0% in 2014 according to OECD figures.
0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 IS R G
RC BEL PRT AUS AFR ESP LVA SVK AUT LIS CHE LUX DNK HUN SVN POL IRL CZE JPN
O ECD US A NO R DE U SW E ES T M EX KO R NL D FI N IT A G BR CA N
Spending on prevention, 2015 Per cent of health-care spending ¹
(2)
Coordination between different care
providers is insufficient
Source : Drees (2017), Les établissem ents de santé – édition 20 17.
80 100 120 140 160 180 200
80 100 120 140 160 180 200
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Use of emergency departments Population
Hospital emergency departments' use
(3)
Hospital expenditures are high
Source : OECD (2017), OECD H ealth Statistics database.
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 LV A M EX CZ E KO R ES T PR T CA N IS R SV K HU N PO L ES P G BR SW E O
ECD FIN IR
L SV N IT A AU S NO R DN K BE L US A DE U NL D JP N CH E F R A G
RC AUT
In-patient curative and rehabilitative care, 2015
(4)
Developing the use of generics would cut
costs
Source : OECD (2017), OECD H ealth Statistics database.
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
LUX ITA GRC CHE FRA BEL IRL PRT ESP AUT TUR DNK SVK NLD NZL DEU GBR
Value Volume
Use of generics, 2015
(5)
Main recommendations to improve the
efficiency of the health-care system
Increase health practitioners’ remuneration for prevention and complex chronicdiseases, which would help reduce the volume of treatments, prescriptions and drug sales
Make it easier for insurers to contract with group practices
Develop electronic health records
Adjust the activity-based system for hospital funding (Diagnosis Related Groups) to increase rewards for efficiency and quality for public and private hospitals
Strengthen the autonomy of public hospital managers by allowing them to develop their own human resource policies
Lower pharmaceutical spending by developing the use of generics, developing targeted information for hospitals and primary-care providers to promote
appropriate prescribing and applying capped reimbursement amounts to a wider range of drugs
(6)
For more information
Disclaimers:The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
http://www.oecd.org/eco/surveys/economic-survey-france.htm
@OECDeconomy @OECD