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dc.contributor.authorHansen, Jorgenen_US
dc.contributor.authorLiu, Xingfeien_US
dc.date.accessioned2011-10-04en_US
dc.date.accessioned2011-11-23T11:35:51Z-
dc.date.available2011-11-23T11:35:51Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201106013313en_US
dc.identifier.urihttp://hdl.handle.net/10419/51807-
dc.description.abstractIn this paper, we formulate and estimate an economic model of labor supply and welfare participation. The model is estimated on data on single men from Quebec drawn from the 1986 Canadian Census. Budget sets for each work-welfare combination - accounting for income taxes, tax credits and welfare benefit rules - are derived using a microsimulation model. We validate our model by comparing reactions to a welfare reform that implied a dramatic increase in welfare benefits predicted by our model to those obtained by using a regression discontinuity approach. The results show that our model is capable of recovering actual changes in labor supply and welfare participation. We also show the advantage of having estimated a structural model by illustrating how labor supply and welfare participation change when benefit levels change.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5718en_US
dc.subject.jelJ22en_US
dc.subject.ddc330en_US
dc.subject.keywordlabor supplyen_US
dc.subject.keywordwelfare participationen_US
dc.subject.keywordunobserved heterogeneityen_US
dc.subject.keywordnatural experimenten_US
dc.subject.keywordregression discontinuityen_US
dc.subject.keywordmicrosimulationen_US
dc.titleEstimating labor supply responses and welfare participation: Using a natural experiment to validate a structural labor supply modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn669263559en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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