Arbeitspapier

Distributional and Behavioural Effects of the German Labour Market Reform

We estimate the effects of the reform of the German Unemployment Insurance that replaced the wage related Unemployment Assistance with an income maintenance program and stronger means testing. We model the tax-benefit system and use the Socio-Economic Panel. We estimate a discrete labour supply model and simulate the behavioural and distributional effects using the pseudo-distribution method. Poverty and inequality decline overall, since households with children and low income gain, while those who used to earn high wages and received high unemployment transfers lose most. The behavioural responses mitigate the redistributive impact of the reform.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 08-006

Classification
Wirtschaft
Fiscal Policies and Behavior of Economic Agents: Household
Time Allocation and Labor Supply
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Measurement and Analysis of Poverty
Personal Income, Wealth, and Their Distributions
Subject
distribution analysis
household labour supply
microsimulation
poverty
Germany
Arbeitslosenversicherung
Reform
Wirtschaftspolitische Wirkungsanalyse
Haushaltsökonomik
Arbeitsangebot
Verteilungswirkung
Haushaltseinkommen
Deutschland

Event
Geistige Schöpfung
(who)
Clauss, Markus
Schnabel, Reinhold
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2008

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Clauss, Markus
  • Schnabel, Reinhold
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2008

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