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Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the...
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We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job … search guidelines - affect unemployment. In our analysis we find that not only micro effects concerning the behavior of … benefit sanctions are more effective in reducing unemployment than an across the board reduction in the replacement rate. …
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