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Title:The targeted negative income tax (TNIT) in Germany: evidence from a quasi experiment PDF Logo
Authors:Spermann, Alexander
Strotmann, Harald
Issue Date:2006
Series/Report no.:IZA Discussion Papers 2067
Abstract:We report empirical evidence from the first field experiments to be conducted in Germany with program and control groups between 1999 and 2002. The evaluated program called Targeted Negative Income Tax (TNIT) is a time-restricted employee subsidy for means-tested welfare recipients. We focus on a unique data set on welfare recipients in Mannheim and estimate the treatment effect of TNIT on participation probability. The average treatment effect is significant and lies between 6.6 and 6.8 percentage points. Since January 1st, 2005, TNIT can be offered to all means-tested long-term unemployed people in Germany by public case managers.
Subjects:field experiments
labor market reform
negative income tax
employee subsidy
long-term unemployment
JEL:C93
I38
J22
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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