Arbeitspapier

Making work pay for the elderly unemployed: evaluating alternative policy reforms for Germany

We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) a subsidy of social security contributions on low wages. The work incentive, labour supply and welfare effects of these hypothetical reforms are analysed on the basis a detailed micro-simulation model for Germany which includes a structural household labour supply model. We find that the simulated labour supply effects of the three policy reforms would be rather similar and of moderate size, ranging between 20,000 and 30,000 older women and between 10,000 and 20,000 older men. Our results also suggest that the hourly wage subsidy yields the highest welfare gains.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 2424

Classification
Wirtschaft
Subject
Ältere Arbeitskräfte
Arbeitsangebot
Lohnsubvention
Beschäftigungseffekt
Deutschland

Event
Geistige Schöpfung
(who)
Haan, Peter
Steiner, Viktor
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2006

Handle
URN
urn:nbn:de:101:1-2009030935
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Haan, Peter
  • Steiner, Viktor
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2006

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