Pierre Courtioux

How income contingent loans could affect the returns to higher education: a microsimulation of the French case

We assess the implementation of income contingent loan (ICL) schemes for higher education in a context characterized by two main features: a formerly tuition-free system and a great heterogeneity in the quality and cost of higher education. In that case, ICL implementation leads to a trade-off between increasing ‘career’ equity in terms of collective public spending versus individual gains and widening low education traps by reducing the incentives to pursue higher education. We rely on a dynamic microsimulation model to evaluate the degree to which low education traps are enlarged by the implementation of ICLs in France. We conclude that the risk of such traps getting larger is very low.

The French Middle Class and the Labour Market

France is one of the European countries where the middle class defined according to an income based approach has been relatively numerous and stable since 1990. Our analysis confirms the hypothesis that the French labour market features a significant dualism: compared to lower-income groups, the middle class is relatively protected from unemployment and from the worsening of working conditions. Several reasons may explain this relative stability: occupational dynamics,the labour force participation trend, and social regulations.

Transformation in the world of work and the middle class: The French experience

While recent studies have highlighted the phenomenon and risks of increased inequalities between the top and the bottom of society, little research has so far been carried out on trends relating to the median income range that generally represents the middle class. This volume examines the following questions: what are the main transformations in the world of work over the last 20 years in terms of the labour market, social dialogue, and conditions of work, wages and incomes that may have affected the middle class? How has the middle class been altered by the financial and economic crisis? What are the long-term trends for the middle class in Europe?