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
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Englisch
- Bibliographic citation
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Series: DIW Discussion Papers ; No. 641
- Classification
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Wirtschaft
Particular Labor Markets: Public Policy
Labor Force and Employment, Size, and Structure
Taxation and Subsidies: Efficiency; Optimal Taxation
- Subject
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in-work support
wage subsidies
unemployment
elderly workers
- Event
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Geistige Schöpfung
- (who)
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Haan, Peter
Steiner, Viktor
- Event
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Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
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Berlin
- (when)
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2006
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Haan, Peter
- Steiner, Viktor
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2006
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