Riots in France

Response on Riots in France-BECKER

Although there is some dispute for the US about the magnitude of the effects of the minimum wage on the unemployment of low skilled persons, the French results on the effects of its minimum wage are far clearer. The clearer results for France (see the work of Bernard Salanie) are probably because the French minimum has been much higher relative to its average wage than has been the American minimum. Note that higher minimums might raise family income inequality not only because it reduces employment, but also because many of those benefiting from higher wages are teenagers and others in fairly well off families.

For the most part (with one or two exceptions) I avoided attributing causes to the French riots. Instead, I stressed that the French labor market system in effect discriminates against Muslim and other immigrants. I suspect that the low wages, high unemployment, and poor education of African immigrants contributed to the riots there, but at this point we can hardly be confident about that conclusion.

Let me add that unemployment rates in France and the US are determined in similar ways. It is not true that persons who have been unemployed for more than six months are no longer considered unemployed in American data. They are considered to be unemployed if they do not have jobs and are looking for work.

I do believe there is often anti-competitive behavior by economic and other elites. It usually operates through discriminatory legislation. Many of the labor laws in Europe favor the elites-in this case, the insiders with good jobs- and hurts outsiders who are looking for decent pay and employment.

I do not believe there is anything in Islamic law, and my wife who teaches Islamic history confirms this, that prevents good Muslims from giving allegiance to non-Islamic states. However, when Muslims are segregated into separate suburbs, as in most French cities, it presumably is easier to generate hostility to the ruling authorities, and even support for more radical forms of Islam.

In the US, new immigrants do generally have jobs, even when they are unskilled. Moreover, immigrants can rise over time in the economic ladder more easily here than in Europe. This does not mean there will be no riots by any American immigrant groups, but I believe they are less likely.