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DIW Discussion Papers 444 / 2004
We evaluate the effect of the federal students' financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990. Thereafter, 50 percent of the student aid has been offered as a non-repayable grant. Our results from simple difference-in-difference ...
2004| Hans J. Baumgartner, Viktor Steiner
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DIW Discussion Papers 438 / 2004
We analyze the work incentives and labor supply effects of the so-called mini-jobs reform (subsidies of social security contributions to people with low-earnings jobs) introduced in Germany in April 2003. The analysis is based on a structural labor supply model embedded in a detailed tax-benefit microsimulation model for which we use the German Socio-Economic Panel (GSOEP). Our simulation results show ...
2004| Viktor Steiner, Katharina Wrohlich
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DIW Discussion Papers 421 / 2004
We analyze potential labor supply effects of a shift from the current German system of taxation of married couples to a system of limited real income splitting on the basis of econometric household labor supply model embedded in a tax-benefit model. Our simulation results show relatively small labor supply effects of a shift from the current system to one limited real income splitting system. In the ...
2004| Viktor Steiner, Katharina Wrohlich
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DIW Discussion Papers 419 / 2004
In the year 2000, the German government passed the most ambitious tax reform in postwar German history aiming at a significant tax relief for households. Drawing on data of the GSOEP, we analyze the distributional and fiscal effects of the tax reform. Our analysis employs microsimulation techniques. Furthermore, we estimate behavioral effects of the tax reform using a discrete choice labor supply model. ...
2004| Peter Haan, Viktor Steiner
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DIW Discussion Papers 417 / 2004
The paper analyses the effect of class size, which stands proxy for school quality, on early career earnings. Using confidential district level information from the German Socio-Economic Panel (GSOEP), it is demonstrated that class size has no discernible effect on early career earnings. This finding is robust to changes in specification and the choice of sub-samples. The economic literature focused ...
2004| Hans J. Baumgartner
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DIW Discussion Papers 415 / 2004
This paper examines the impact of children on female wages in the UK using the National Child Development Study. Empirically this involves using an extension of the Roy model, which simultaneously corrects for the endogeneity of labour force participation and fertility. The wage differential between women without children and women with children is estimated to range between 19% and 22% not accounting ...
2004| Tarja K. Viitanen
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DIW Discussion Papers 412 / 2004
This study analyzes the effect of child care costs on the labor supply of mothers with preschool children in Germany using data from the German Socio-Economic Panel (2002). Child care costs are estimated on the basis of a sample selection model. A structural household utility model, which is embedded in a detailed tax-benefit model, is used for labor supply estimation. In contrast to a previous German ...
2004| Katharina Wrohlich
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DIW Discussion Papers 409 / 2004
We analyze optimal income taxes with deductions for work-related or consumptive goods. We consider two cases. In the first case (called a complex tax system) the tax authorities can exactly distinguish between consumptive and work-related expenditures. In the second case (called a simple tax system) this distinction is not exact. Assuming additively separable utility functions, we show that work-related ...
2004| Pio Baake, Rainald Borck, Andreas Löffler
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DIW Discussion Papers 408 / 2004
Tax competition for a mobile factor is different in "new economic geography settings" compared to standard tax competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax differential between the core and the periphery can be maintained. The present paper reexamines this issue in a setting which, in addition to the core-periphery equilibria, ...
2004| Rainald Borck, Michael Pflüger
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DIW Discussion Papers 394 / 2004
Estimating labor supply functions using a discrete rather than a continuous specification has become increasingly popular in recent years. On basis of the German Socioeconomic Panel (GSOEP) I test which specification of discrete choice is the appropriate model for estimating labor supply: the standard conditional logit model or the random coefficient model. To the extent that effect heterogeneity is ...
2004| Peter Haan