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Assessment of the 2019 increase in the activity allowance

Project Status To be completed

Context

In recent decades, various countries have seen the development of social transfers aimed at people in work, with the aim of both providing greater financial incentives to work and combating poverty. Notable examples include the Earned Income Tax Credit (EITC) in the United States and the Working Tax Credit in the United Kingdom. In France, the ‘prime d’activité’ is designed to fulfil this role. Following the ‘yellow vests’ movement, this scheme received a one-off increase in 2019, and it is necessary to assess its effects on both employment and poverty.

Presentation

This study will aim, on the one hand, to estimate the impact of this revaluation on individual labour market trajectories. This effect will be estimated by drawing on comprehensive administrative data and by comparing groups for which this increase takes on different values (e.g. depending on the spouse’s income or the number of children). The study will analyse any differences in the effects of this adjustment depending on the constraints individuals face in the labour market. Finally, based on these estimated effects, the project aims to assess the impact of this reform on poverty levels.

Research Team

This project is led by the pole Tax system.
Pierre Boyer
Pierre Boyer
Brice Fabre
Brice Fabre
Claire Leroy
Claire Leroy
Antoine Bozio
Antoine Bozio
Maxime Tô
Maxime Tô

Partners

Cour des ComptesHaut-commissariat à la Stratégie et au Plan
Last modified: July 20, 2026