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http://hdl.handle.net/10419/18387
  

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dc.contributor.authorBargain, Olivieren_US
dc.contributor.authorCaliendo, Marcoen_US
dc.contributor.authorHaan, Peteren_US
dc.contributor.authorOrsini, Kristianen_US
dc.date.accessioned2009-01-28T15:43:08Z-
dc.date.available2009-01-28T15:43:08Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18387-
dc.description.abstractTo tackle mass unemployment and increase participation rates, the German government over recent years has mainly focused on supply side strategies, including 'making work pay' policies. The 2003 Mini-Job reform introduced an extended subsidy of social security contributions for low wage workers. In this paper, we evaluate the employment effects of this reform using a behavioural tax-benefit microsimulation model. Ex-ante micro policy evaluations based on labour supply models usually ignore involuntary unemployment. This leads to biased estimates of labour supply elasticities and erroneous predictions of the effects of the measure. This aspect is all the more important in a country like Germany, characterized by high unemployment. In this analysis we evaluate the employment effects of the Mini-Job reform by controlling for involuntary unemployment through a double-hurdle model. When focusing on the main labour force, we show that the Mini-Job reform has only a small positive effect on the extensive margin, which is outweighed by a reduction of working hours at the intensive margin.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDIW-Diskussionspapiere 536en_US
dc.subject.jelJ22en_US
dc.subject.jelH31en_US
dc.subject.jelC25en_US
dc.subject.jelC52en_US
dc.subject.ddc330en_US
dc.subject.keywordTax-benefit Systemsen_US
dc.subject.keywordMicrosimulationen_US
dc.subject.keywordHousehold Labour Supplyen_US
dc.subject.keywordMultinomial Logiten_US
dc.subject.keywordInvoluntary Unemploymenten_US
dc.title'Making Work Pay' in a Rationed Labour Market: The Mini-Job Reform in Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn505102307en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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