We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) an employment bonus in the form of subsidized social security contributions on low wages. The work-incentive, labor-supply, and welfare effects of these policy...

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...

In the year 2000, the German government passed the most ambitious tax reform in postwar German history aiming at significant tax relief for households. We analyze the effects of this reform on the distribution of household incomes using a behavioral microsimulation model based on representative...

We analyse two recent proposals suggesting the subsidy of social security contributions in order to increase employment in the low wage sector in Germany. Our findings based on a behavioral microsimulation model show: First, both reforms have only small effects on labor force participation and...

We analyze empirically the optimal design of social insurance and assistance programs when families obtain insurance by making labor supply choices for both spouses. For this purpose, we specify a structural life-cycle model of the labor supply and savings decisions of singles and married...

Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers in...