Arbeitspapier

Employment effects of welfare reforms: evidence from a dynamic structural life-cycle model

In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effects of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven rationing risk that might prevent individuals from realizing their optimal labor supply state, resulting in involuntary unemployment. We use this framework to study the employment effects of transforming a traditional welfare state, as is currently in place in Germany, towards a more Anglo-American system in which a large proportion of transfers are paid to the working poor.

Language
Englisch

Bibliographic citation
Series: DIW Discussion Papers ; No. 790

Classification
Wirtschaft
Subject
Life-cycle labor supply
Involuntary unemployment
In-work credits
Sozialreform
Workfare
Wirtschaftspolitische Wirkungsanalyse
Beschäftigungseffekt
Arbeitsangebot
Ökonomischer Anreiz
Lebenszyklus
Einkommensteuer
Sozialtransfer
Unfreiwillige Arbeitslosigkeit
Theorie
Deutschland

Event
Geistige Schöpfung
(who)
Haan, Peter
Prowse, Victoria
Uhlendorff, Arne
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2008

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Haan, Peter
  • Prowse, Victoria
  • Uhlendorff, Arne
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2008

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