This paper contributes to the debate about the optimal design of tax-transfer systems. Basedon the theory of optimal taxation, combined with microsimulation and microeconometrictechniques we derive the welfare function which makes the current German tax and transfersystem for single women optimal...

In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effect of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven rationing risk that might prevent individuals from...

Der vorliegende Beitrag untersucht die Auswirkungen der geplanten Reformen der Arbeitslosenversicherung im Zuge der Agenda 2010 auf die individuellen Reservationslöhne der Arbeitslosen und auf die Übergangsraten in Arbeit. Dabei wird ein dynamisches Suchmodell entwickelt, auf dessen Basis...

This paper investigates the reservation wages of unemployed persons on the basis of a job-search model with non-static reservation wages using panel data from Germany from 1987 to 1998. The results suggest that reservation wages are relatively high in Germany compared to other countries....

This paper studies the reservation wages of unemployed persons and the wages offered them in Germany from 1987 to 1998, whereby special focus is placed on unemployment duration. The results of the study indicate that in contrast to reservation wages, offered wages decline considerably with...

The paper presents a tractable general equilibrium model of search unemployment that incorporates absence from work as a distinct labor force state. Absenteeism is driven by random shocks to the value of leisure that are private information to the workers. Firms offer wages, and possibly sick...

This paper studies the relevance of social interactions among the unemployed. Identification is based on a salient and selective extension of the potential duration of unemployment benefits. If social interactions are important, this policy change affects entitled individuals not only directly,...

This paper uses a unique Portuguese data set to examine the effect of unemployment benefit receipt and maximum duration of benefits on escape rates from unemployment. The focus is on the time profile of transitions out of unemployment. The novel aspect of the study resides in its identification...

We analyze the effects of regional structures on both females? willingness to work and the probability of being employed for those willing to work. Special permission was granted to link regional data to individual respondents in the German Socio-Economic Panel (GSOEP). Results of a bivariate...

In 1998 the Slovenian UI system was drastically reformed. The reform reduced the potential duration of unemployment benefits substantially and simultaneously improved employment services offered to, and monitoring of, the recipients. We find that the reduction in potential benefit duration had a...