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Abstract

In Le Capitalisme d'héritiers (heirs' capitalism), economist Thomas Philippon convincingly challenges the received wisdom according to which longer working hours, less powerful unions, and less state regulation are what France needs to thrive. In the picture he paints, French company owners and managers are not victims but rather key actors of a low-trust equilibrium that combines dismal levels of cooperation between employees and employers, widespread family control, confrontational unions, and hierarchical management. Breaking this vicious circle is hard, but would be essential to unleash France's economic potential.