Groupes d'experts sur le SMIC | Rapport décembre 2009

The document is a report by the group of experts on the evolution of the Growth-Linked Interprofessional Minimum Wage (SMIC) in France, specifically regarding its revaluation mechanism and the impact on employees. Key points include:

Composition of the Expert Group

• The group was appointed by the Prime Minister's decree on May 23, 2009.
• Chairman: Paul CHAMPSAUR, President of the Public Statistics Authority.
• Members:
  • Martine DURAND, Deputy Director of Employment, Labor, and Social Affairs at the OECD.
  • Gilbert CETTE, Director of Microeconomic and Structural Studies at the French Central Bank and associate professor at the Mediterranean University.
  • Francis KRAMARZ, Director of the Research Center in Economics and Statistics (CREST) and professor at Ecole Polytechnique.
  • Etienne WASMER, Professor at Sciences Po, associate researcher at the OFCE and CREST.
• General Reporter: Philippe RAVALET, Court of Auditors.
• Reporters: Cyril NOUVEAU, DARES; Delphine REMILLON, DGTR.

President's Statement

• The report marks the second evaluation on the SMIC since its institution under the law of December 3, 2008.
• It coincides with the 40th anniversary of the legislation for the SMIC.
• The initial report aimed to enlighten the government and the collective bargaining commission on the SMIC's revaluation process.
• The group analyzed available statistical data, guided by economic theory and empirical research.
• It highlighted the need for more comprehensive statistical information and empirical studies, which were pursued with the help of economic and social administrations.
• The report presents preliminary findings, with subsequent reports expected to expand on these results and explore new dimensions.

Main Findings

• SMIC Revaluation Mechanism: The report discusses the automatic revaluation system, including the shift from July to January 2010, and references to the basic worker's hourly wage.
• Impact on Employees: It notes a significant decrease in the percentage of employees benefiting from the annual SMIC revaluation as of July 2009, compared to levels in 1996.
• Support Policies: The report highlights the role of policies such as the Employment Bonus (PPE) and Active Solidarity Income (RSA) in supporting work incomes.
• Comparison with International Data: It underscores the importance of work hours rather than salary in contributing to poverty, suggesting that the SMIC alone may not effectively combat poverty.
• Statistical Evidence: Additional statistical evidence from recent OECD studies supports this perspective.
• Future Directions: The group plans to study the short-term and medium-term links between SMIC increases and income distribution, analyze salary, employment, and poverty relationships in France, and examine the career trajectories of low-wage earners.

This report serves as an analytical tool for policymakers and stakeholders interested in understanding the complexities and implications of the SMIC's role in the labor market and poverty reduction strategies.