taxes. We exploit a reform that introduced substantial reduction in these two provisions for unemployed workers aged less … on wages takes place during the first year of the reform. Our simulations also show that the increase in wages is mostly …

main objective of the reform was to reduce the amount of benefits for individuals that do not have a long contributory … history as the reform introduced a disincentive to apply to the system if the individual does not have 35 years of effective … reform ; life-cycle model ; policy evaluation …