Introduction 4
Literature Review 7
Results and Discussion 13
Conclusion and Recommendations 14
References 15
Appendixes 18
Introduction
France has been debated on their expatriates’ citizen lately due to the expansion of expat workers. It is seen negatively as some politics state that it is a “lose of brains” for the country because of the crisis and fiscal pressure of the government (Biacabe & Robert, 2014). The French system is often criticized due to the high risk that entrepreneurs are facing when they open their business in France. For instance, as Jean Tirole who awarded the Nobel Prize in economic, explained the French labour legislation does not allow the small and medium enterprise, in particular, to develop their business properly: it is difficult to adapt their workforce depending on the demand (Fabre, 2014). The economy impact of small and medium enterprise is considerable as it concerns 95% of the overall domestics companies in almost every country, France included (Jean-Amans & Abdellatif, 2010). Most of the job creations are made in those organizations and unemployed people tend to go abroad when they cannot find a job in France. The legislation “Labour Law”, also named “El Khomri Law”, has been voted through the article 49.3 of the constitution which allow the National Assembly to adopt the law in the first reading without a vote of MPs. This law is supposed to offer more flexibility for the entrepreneurs such as increasing work time or facilitate dismissals for example. However, several French citizens are currently opposed to this law and the government has moved backward on few points (Mazuir, 2016). The 21st of July 2016, the text was revised and finally adopted but it still has to be approved by the Constitutional Council in August (Duval, 2016).
Causes of the migration from France can be explained by the mobility of persons. The dynamic society always has an internal movement as individuals tend to occupy a higher social status (Stokols, Shumaker, Martinez, 1983). The internal movement that changes the individual position or status is called social mobility. In most cases, an expat has a transition to a higher class position called for upward social mobility. As shown in Figure 1, the number of French expats have been continuously increasing the past decades (Biacabe & Robert, 2014). Students and new graduates are the first segment to go abroad to work; it has been increasing after the creation of Erasmus in 1987 and obviously due to the globalization; and therefore, the international mobility opportunities created by it (Biacabe & Robert, 2014). Also, managerial position workers tend to go abroad to work much more than low labour workers. As shown in Figure 2, Bachelor, Master and PhD are the most widespread diploma of French expatriates, with 41%, 32% and 12% respectively (Biacabe & Robert, 2014).
It is important to notice that the employment rate is higher among French seniors that live abroad: the number of active seniors over 65 years old reach only 1,9% compare to ones living abroad which is significantly more 24% (Ministry of Foreign Affairs, 2013). Finally, it can be noticed that all age categories are concern by the phenomena of expatriation.
We can divide the French expatriates workers into three categories (Tharenou, 2015):
Organization Expatriates (OEs): the ones working for a French company located abroad.
Self initiated expatriates (SIEs): the ones who want to work abroad independently for a certain period of time.
Skilled Immigrants (SIs): the ones who have good career prospects in other country.
The study will look into the second type of expatriates: SIEs are the largest portion of expatriate with 65% coming from western countries compared to 35% of OEs (Cerdin & Selmer, 2013). By analysis the reason behind the increasing number of French expatriates worldwide, it will give a better vision of the opportunities and weaknesses in the French labour legislation; but also, it will address greater details of the non-economic reasons. Several publications have been made about SIEs; however, it is a fairly new topic as the first publication was published in 1997. Figure 3 identifies the number of literature found based on several search terms, in which two third of them date from 2010 (Haslberger, Vaiman, 2013). Therefore, deeper researches are necessary for a current subject.
This research aims to understand the advantages and disadvantages for a French worker to go abroad for his career. It will identify the risks and the difficulties of integrating into a new society. Therefore, as mentioned previously, only the self-initiated expatriates will be taken into account. The objectives are: firstly, to understand why French citizens tend to look more abroad than in the past for their career plan. Interviews will be conducted online through a sample of French SIEs based principally in Switzerland and UK, the two firsts destinations seeking by French workers as shown in Figure 4 (Biacade & Robert, 2015). The second objective is to understand the push and pull factors of their decisions to move abroad through their career orientation. Unemployment rate in France is one of the highest in Europe (L’horty & Saint-Martin, 2015), the taxation operated by the government scare entrepreneurs (Figure 5). For instance, the tax rate on individuals is 77% higher in France than in the UK and the employer's' contribution rate is 42% of the gross salary in France compare to 11% in the UK (BDO, 2014).
However, is it really a good idea to expatriate to face primarily unknown issues from countries abroad? When looking at SIEs, studies tend to not link the phenomena of expatriation with the one of repatriation. However, by understanding why SIEs come back to France after a certain period of time, it will link with the reasons of leaving abroad before (Caulfield, Tharenou, 2010). Therefore, the third objective is to understand the factors that will push French SIEs to come back to their home country. The purpose of this paper will focus on the theories previously emitted and examine the results of the research thought hypothesis based on the theories suggested in the Literature Review section. Few researches have been made on the expatriation process; therefore, the number of articles available is a bit weak. The study will be useful for future French citizens that hesitate to stay or to go abroad as well as contributed to the push and pull factors analysis of expatriates’ decisions
Literature Review
Mass movement of highly skilled expatriates is influenced by the dynamic development of new information technologies that allow to connect intellectual work effectively with other factors of social production (Lowell & Findlay, 2001). The authors believe that mobility of professionals is developing in various local forms, but its implications are universal. They imply increasing competition and cooperation of the European countries with all their contradictions inherent in international cooperation. Unlike immigration cross-border movement of labor is usually quite favorable for donor countries. They allow to reduce unemployment, social spending, to increase foreign exchange resources from expats (Mahroum, 2001). Emigration of highly skilled means loses of economic competition for donor country, France starts to lag behind in comparison with other countries.
Based on Deloitte study on Mood barometer of French young graduates in 2015, 21% of the 400 unemployed young graduates questioned see their career abroad; this number was 13% in 2012 and 27% in 2012 and 2013 (Deloitte, 2015). Therefore the new entrants to the labour force are more temped to go abroad than before and this can be explained by several factors, which are involved in the decision making process. A study carried out by Biacabe and Robert in March 2014 has analysed especially the French workers abroad. They highlight two main reasons for this increase of workers leaving the country to work abroad. First is the globalisation that has influenced considerably the pathway sought out by companies and the new generation has to adapt to new criteria such as the imperative necessity of knowing foreign language(s). Then, the national environment may be a strong factor of expatriation as well. The difficult current economy and political tension which are disheartening unemployed workers push them to look abroad (Biacade & Robert, 2014). Beside the increase of SIEs worldwide, their length of stay in a host country has considerably decreased: SIEs were staying 55 months abroad on average in 1990 compared to 20 months in 2006 (Peiperl, Lexy, Sorell, 2014). The destination countries where French are the more numerous are Switzerland, US, UK, Belgium and Germany. Beside the “American Dream”, the other countries can be explained by their proximity from France as well as their biggest offer in job availability and stronger salaries, especially in Switzerland and UK (Baumard, 2015). However, high salaries are correlated with living expenses. Expats in Switzerland very often complain about the lack of opportunity to acquire affordable housing and the high cost of maintenance of children. So “74 percent had a negative opinion of the affordability of childcare, compared with a global average of 34 percent” (The Local, 2016). Furthermore Switzerland's unattractiveness implies a complexity for expat’s integration after arrival in Switzerland. Most expats said about difficulties to find friends among the residents of Switzerland. Most expats think that the Swiss unfriendly. However, expats appreciate the standard of living in Switzerland: personal safety, transportation, medical care and the opportunity to travel. In addition, expats who spent several years in Switzerland in most cases have higher salaries than in France. The problem of integration of foreigners is much more complex than it seems by expats, who often forget that they should take steps to integration into society. Expats can be characterized by unwillingness to integrate in the regional structural changes in the business. Expats often have to overcome serious cross-cultural differences. Great influence on the success of the work has not only professional skills but also the willingness and ability to integrate into a new cultural context. In Switzerland expats encounter the difference in mentalities, attitudinal stereotypes and multi-lingual environment, so “55% generally disagree that learning the local language is easy” (Internations, 2016). This affects the decision to return to homeland.
Researches on gender expatriation exist as well, Thanerou describes the differences between man and woman on their decisions and results from expatriation. He states that «Migration statistics also show that female professionals readily self-initiate their expatriation, and more often than men» (Thanerou, 2010). However, this is less truth when statistics concerns citizen from the European Union. For instance, the average emigration rate of women with higher education is the same for man and woman in Europe with 10% for both. (Thanerou, 2010). Selmer and Lauring have divided in five points the reasons to expatriate. First of all, the desire for adventure and travel is the most important variable for working abroad. Secondly, the career in general, which comes from the desire of being promoted by enhancing professional experiences. Thirdly, the family is as well involved in the decision process. Fourthly, the financial incentives aspect, future expatriates see a way to make and save more money. And lastly, the opportunity for change, that goes through a life evolution or to escape their current life (Selmer & Lauring, 2011). Doherty, Dickman and Mills discover similar reasons for expatriation, as shown in Figure 7 (Doherty, Dickman, Mills, 2011). Also Selmer and Lauring add the demographic factor to those reasons. They analyse marital status, nationality, previous expatriate experience and seniority being part of the decision process to work abroad or not (Selmer & Lauring, 2011). In Mobility and Emotions Selmer and Lauring discover that dispositional affectivity, that undertakes PA (positive affectivity) and NA (negative affectivity), is a precise determinant of SIEs. The personality of each individual affects the opportunities to fit or not into a new environment: PA are reacting positively to “environment stimuli” compare to NA that react negatively (Selmer & Lauring, 2014).
The Figure 8 describes the U-Curve Theory of Adjustment, which “has been used to describe the cross-cultural adjustment process of expatriate employees or sojourners within a host culture” (Lee, 2005). Lee developed the numerous factors influencing expatriates through a case study of Taiwanese financial institution expatriates in the United States. Four stages of adjustment are describe when an individual move to a new country. His research is based on OEs; however, SIEs usually face similar feelings. The first stage is honeymoon, the moment of discovery. Followed by the culture shock stage, “characterized by frustration and hostility towards the host nation and it people” (Lee, 2005). The third stage is the adjustment stage where people progressively adapt to the new culture of the host country. And finally, the mastery stage implies the moment when the expatriate is feeling confortable and shows dynamic in his/her new environment (Lee, 2005). It can be wonder is the phenomenon of entrepreneurship is correlated to the expansion of expatriates. Not all SIEs are planning to be entrepreneur, but career entrepreneurship might be a reason why more people go abroad. Korotov, Khapova and Arthur explain that globalization and gender gap are factors playing on entrepreneurship decisions. Expatriates, as entrepreneurs, have to ask themselves “why to go for a particular career opportunity, how to get that opportunity and whom to know or contact to follow the opportunity.” (Korotov, Khapova, Arthur, 2011). However, it is important to mention that SIEs compared to OEs have a greater integration. This is due to the fact they have decided to leave and discover a new culture, which lead to easier interaction with locals (Caulfield, Tharenou, 2010).
The kaleidoscope career model is interesting to understand the generational differences in work attitudes and it might be useful to segment the type of SIEs. It exists four major generations of the twentieth century, which are the Greatest Generation (born from 1922 to 1945), the Boomers (born from 1946 to 1964), Xers (born from 1965 to 1983), and the Generation Y (born from 1984 to 2002). Different generations have different expectation in term of authenticity, balance and challenge at work (Sullivan, Forret, Carraher, Mainiero, 2009).
Research Methodology
A certain number of survey questions will be used to to define the sample of French workers abroad. First, distinction between OEs, SIEs, SIs needs to be done as the paper focus especially on self initiated expatriates, based on the definition mentioned in the previous section. Question such as “Did the expatriation opportunity has been offer to you or you have decided on your own to leave France?” will be asked to confirm they have leave the country independently from any organizations.
The study will be made based on a qualitative research method through interviews and explores the views, experiences, beliefs and motivations of individual respondents. The interviews will be semi-structured with key questions. Unstructured interviews are time consuming and more difficult to analyze but structure questions does not allow freedom for participants to develop their answers; therefore, having an semi-structured is a more flexible approach for the purpose of the subject. Based on Thanerou study, the average sample size for complete results is 30 probed for interviews. The data is mostly collected through survey. SIEs studies tend to employed more quantitative research; however, 40% use qualitative approach though most of the time interviews (38%). Moreover, in order to avoid bias, diverse sources must be investigated. To meets the requirements of the study, strong and credible results will be found by expanding the sample size and ensure the legitimacy of the sample (Thanerou, 2014). The sample will be found in French union abroad such as the UFE, FIAFE, CNCCEF, Linkedin and Facebook group.
Results and Discussion
Conclusion and Recommendations
References
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Appendixes
Figure 1: Evolution of French population registered in the world from 1995 to 2013. (Biacade & Robert, 2015) Original Source: Department of Foreign Affairs, Register of French Established Outside of France (2013)
Secondary School High School Bachelor +1 to +3 Master PhD
Figure 2: French expatriate’s level of study in 2013 (Biacade & Robert, 2015) Original source: Investigation on french expatriates, Federal Department of Foreign Affairs, Department of Foreign Affairs (2013)
Figure 3: Rough Literature search (Haslberger, Vaiman, 2013).
Figure 4: 20 first countries that host French expats in 2012 (Biacade & Robert, 2015)
Original Source: Register of French Established Outside of France (2012)
WESTERN EUROPE (789138) EASTERN EUROPE (29988)
ASIA & OCEANIA (120027) MIDDLE EAST (136394)
SOUTH & CENTRAL AMERICA (97425) NORTH AMERICA (203818)
FRENCH-SPEAKING AFRICA (117378) NON FRENCH-SPEAKING AFRICA
NORTH AFRICA (98090) (18796)
Figure 5: Geographical distribution of French expat in 2012 (Biacade & Robert, 2015) Original Source: Department of Foreign Affairs, Register of French Established Outside of France (2012)
Figure 6: Venn diagram of the four conceptual criteria of an SIE (Cerdin & Selmer, 2013)
Figure 7: The order in which each group rated the influence of the 38 items impacting the decision to work abroad for SIEs (Doherty, Dickman, Mills, 2011).
Figure 8: The U-Curve Theory (Lee, 2005)
Less than 6 years old (8%) 26 to 40 years old (24%)
6 to 18 years old (18%) 41 to 60 years old (26%)
18 to 25 years old (10%) More than 60 years old (14%)
Figure 9: Age structure of French expatriates in 2012 (Biacade & Robert, 2015). Original source: Department of Foreign Affairs (2012)
Figure 10: Overall Cost (income + taxes + contributions) per country based on gross annual salary (BDO, 2014).
