Distributional and Behavioural Effects of the German Labour Market Reform

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

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

Classification and Topics

• 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

Contributors, Places and Time

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

Further information

• Handle: http://hdl.handle.net/10419/24676
• Last update: 10.03.2025, 11:44 AM CET