Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273330 
Year of Publication: 
2023
Series/Report no.: 
DIW Discussion Papers No. 2040
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We empirically analyze the heterogeneous welfare effects of unemployment insurance and social assistance. We estimate a structural life-cycle model of singles' and married couples' labor supply and savings decisions. The model includes heterogeneity by age, education, wealth, sex and household composition. In aggregate, social assistance dominates unemployment insurance; however, the opposite holds true for married men, whose leisure time declines more than that of their spouses when unemployment insurance is reduced. A revenue-neutral rebalancing of social support away from unemployment insurance and toward social assistance increases aggregate welfare. Income pooling in married households decreases the welfare value of social assistance.
Subjects: 
Life-cycle labor supply
Family labor supply
Unemployment insurance
Social assistance
Household savings
Employment risk
Added worker effect
Intra-household insurance
JEL: 
J18
J68
H21
I38
Document Type: 
Working Paper

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