Effect of the New French “ Active Solidarity Income” (RSA) Benefit on Labour Market Equilibrium. This paper uses the Pissaridesmatchingmodel to study the effects of the “ Active Solidarity Income” (RSA) benefit on the unskilled labour market. Unskilled workers are employed in “ low-ranking” jobs that pay the minimum wage or in “ higher-ranking” jobs, part-or full-time. Job-seekers may look for only one type of job, part-or full-time (voluntary part-time work) or for both types of jobs (involuntary part-time work). The RSA increases earnings but reduces the bargained wage of part-time workers in higher-ranking jobs. It also raises the employment level and, broadly speaking, the proportion of higher-ranking jobs and part-time work, as well a...