A municipal-level analysis of employment impacts of the RSA

This study examines the employment effects of the incentive component of the French Revenu de Solidarité Active (RSA), a subsidy intended to support unemployed individuals with low income and reduce poverty traps. A difference-in-differences approach is applied using municipality-level data to assess potential impacts on employment outcomes. Two complementary methods, spatial econometrics and propensity score matching, are also employed. Results show no significant or robust effects at the municipal level, indicating that the RSA’s employment impact cannot be identified in this aggregated setting. The analysis underscores the limits of municipality-level evaluation for policies targeted at individuals.