Using bivariate random-effects probit estimation on data from the German Socio-Economic Panel we show that women respond to their partners' unemployment with an increase in labor market participation, which also leads to an increase in their employment probability. Our analysis considers within...

We use the UK Time-Use Survey 2014/15 to analyze how differences in the frequency and intensity of social contacts contribute to the gap in experienced well-being between employed and unemployed persons. We observe that people generally enjoy being with others more than being alone. The...

This paper examines possible spillover effects of parental unemployment on the subjective wellbeing of 12- to 21-year-old children. Using German panel data (SOEP), we show that unemployment of fathers and mothers is negatively associated with their children's life satisfaction. When controlling...

An important aspect when analyzing economic inequality between households with children is time. At given monetary incomes, the material well-being of families may be very different depending on how much time parents have at their disposal. In this paper, we provide estimates of the subjectively...

We study the subsidization of extra jobs in a general equilibrium framework. While the previous literature focuses on symmetric marginal employment subsidies where firms are rewarded when they increase employment but punished when they reduce their workforce, we consider an asymmetric scheme...

Using data from the 2006 wave of the German Socio-Economic Panel (GSOEP), this paper analyzes how a minimum wage affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a statutory minimum wage of EUR 7.50 per hour would cost...

We reassess the scarring" hypothesis by Clark et al. (2001), which states that unemployment experienced in the past reduces a person's current life satisfaction even after the person has become reemployed. Our results suggest that the scar from past unemployment operates via worsened...

Do minimum wages reduce in-work-poverty and wage inequality? Or can alternative policies do better? We evaluate theses issues for the exemplary case of Germany that suffers from high unemployment among low-skilled workers and rising wage dispersion at the bottom of the wage distribution. We...