HEC Research Papers Series,
HEC Paris

Abstract: In 2009, France will replace its income maintenance scheme, "revenu minimum d'insertion", by a new one, revenu de solidarité active, which will improve the beneficiaries'incentives to work. While some have claimed that the reform should lower the current age limit to get the benefit, i.e., 25 years, except for a parent, the law has not changed it. This note states the pros and cons of putting a 18 years age limit and eventually concludes against it. On this specific issue, the cautious conservatism of the reform – one of its an overall features – appears to be supported by theoretical reasoning.

Keywords: active solidarity income (revenu de solidarité active); minimum integration income (revenu minimum d'insertion); income maintenance schemes; universal basic grant; incentives; redistribution; poverty among the young

JEL-codes: D63; H21; H31; H53; I38

13 pages, October 1, 2008

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