The economic situation of all the major developed countries has changed significantlyduring the 2007-2010 period. Yet many economic policies have been kept in place.This is true in particular of a key measure in French government policy: tax reductionson overtime hours and their exemption from social charges. In this article we proposesimulations of this scheme based on the economic context in which it is implemented.According to our simulations, this kind of measure is pro-cyclical and therefore poorlysuited to the current situation of the French economy. Furthermore, even in the case ofgood conditions, the scheme would not be funded. Without financing, this measurewould widen the deficit and would amount to a fiscal stimulus. Financing it throughan increase in levies would radically change its nature.
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