Discussion Papers 641, 26 S.
Peter Haan, Viktor Steiner
2006. Nov.
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Published in: FinanzArchiv 64 (2008), 3, 380-402
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 basis of a detailed micro-simulation model for Germany which includes a structural household labour supply model. We find that the simulated labour supply effects of the three policy reforms would be rather similar and of moderate size, ranging between 20,000 and 30,000 older women and between 10,000 and 20,000 older men. Our results also suggest that the hourly wage subsidy yields the highest welfare gains.
Topics: Labor and employment
JEL-Classification: J21;J48;H21
Keywords: in-work support, wage subsidies, unemployment, elderly workers
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/18534