Generous income support programs as provided by European welfare states have often been blamed to hamper employment. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take up work. Using German microdata over the period 1993-2010 we find that recent reforms in Germany increased work incentives at the extensive margin measured by the ...
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 couples. Partial insurance against wage and employment shocks is provided by social programs, savings and the labor ...
We examine differences in altruism and laziness between public sector employees and private sector employees. Our theoretical model predicts that the likelihood of public sector employment increases with a worker·s altruism, and increases or decreases with a workers laziness depending on his altruism. Using data from the German Socio-Economic Panel Study, we find that public sector employees are significantly ...
Welfare states redistribute both between individuals reducing annual inequality and over the life-cycle insuring against income risks. But studies measuring redistribution often focus only on a one-year period. Using German SOEP data from 1984 to 2009, long-term inequality over a 20-year period is computed and then decomposed into an inter- and intra-individual component. Results show that annual inequality ...
This paper studies the effect of endogenous audit probabilities on reporting behavior in a face-to-face compliance situation such as at customs. In an experimental setting in which underreporting has a higher expected payoff than truthful reporting we find an increase in compliance of about 80% if subjects have reason to believe that their behavior towards an officer influences their endogenous audit ...
Im Vordergrund der politischen Diskussion um die Rentenreform 1984 stehen gegenwärtig Pläne, die nicht kostenneutral verwirklicht werden können. Auch wenn die Rentenfinanzierung zur Zeit gesichert ist, zeigt die für 1981 vorgesehene Beitragserhöhung von 18 auf 18,5 vH die mittelfristig zu erwartenden Schwierigkeiten. Die Verteilungswirkungen des gesamten Vorhabens sind nur schwer zu durchschauen. Folgende ...
Die Lage der öffentlichen Haushalte in Deutschland ist gut und wird es in diesem und im kommenden Jahr bleiben. Der Staat erwirtschaftet weiter Überschüsse; der Finanzierungssaldo wird in beiden Jahren bei 0,5 Prozent in Relation zum nominalen Bruttoinlandsprodukt liegen und auch in konjunkturbereinigter Betrachtung sind Überschüsse zu erwarten. Diese fallen allerdings nicht mehr so hoch aus wie im ...
We analyse the effectiveness of fiscal policy rules for business cycle stabilisation in a monetary union using a quarterly macro-econometric model of Germany. The simulations compare a deficit target and an expenditure target under a range of supply, demand and fiscal shocks. Their effects are evaluated by their impact on prices and output. The analysis demonstrates that in general the deficit target ...