Thursday, March 17, 2016

Rigidity Is in the Eye of the Beholder

As the fragrance of fumigènes once again fills the streets of Paris and lycéens grant themselves another day off from the task of preparing for the bac, Le Monde, mine de rien, publishes a nice graph showing that, according to the OECD, Germany's "rigidity index" is actually slightly higher than France's. In other words, the idea that revising the labor code to make it easier and cheaper for firms to shed workers is not likely to reduce France's unemployment rate (currently 10.4%) to Germany's (4.3%). But never mind that: France will gain a jump in the race to the bottom of the rigidity league tables, currently occupied by the United States and New Zealand.