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La prime au travail vs La prime pour l'emploi : l'effet sur le retour à l'emploi

The development of working poor class led the concerned countries to look for policies to reduce this poverty in the work without interfering with the flexibility of the labor market as in the case of the minimum wage legislation. In this perspective, several measures were implemented. Following the example of the Prime Pour l'Emploi adopted in France, Quebec established the Prime au Travail in order to increase the labor supply and to improve the situation of the low salaries. Nevertheless, these social policies of assistance to the poorest are generally ineffective because of externalities led on the behavior of the workers so creating the inactivity trap. In a context of economic crisis stressing the budget deficits of most of the developed countries, this article aims at estimating the effects of these two policies on the labor market participation as well as on the situation of low incomes.

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