The unemployment rate in France is currently over 10 percent, and the youth (under age 25) unemployment rate is about 22 percent. Over the next few years, one million people on the unemployment rolls will be offered subsidized jobs (the government subsidy will go to employers who create new jobs, and the subsidy will be X euros per hour per employee hired). Use the theory studied in this course to analyze how wage subsidies to employers are likely to affect employment levels in France.