ABSTRACT

This chapter assesses the French and the US welfare policy experiences may be done from various points of view, such as the fight against poverty, the reduction of income inequalities, or the transition from welfare to work. The differences between the French and the US structure of income impact all these aspects. The chapter draws a rough sketch of the French income structure and of the role of social transfers. It discusses the different means-tested benefits and examines the income support policies. The chapter deals with the relationship between income support policies and employment, in the context of the present labor market situation in France. In France, more than in many other European countries, social transfers represent a large part of the family income. The Revenu Minimum Insertion program bases eligibility on family income, with the formula used to calculate the level of the allowance similar to the one employed to define eligibility.