Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18534 
Year of Publication: 
2006
Series/Report no.: 
DIW Discussion Papers No. 641
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) a subsidy of social security contributions on low wages. The work incentive, labour supply and welfare effects of these hypothetical reforms are analysed on the basis a detailed micro-simulation model for Germany which includes a structural household labour supply model. We find that the simulated labour supply effects of the three policy reforms would be rather similar and of moderate size, ranging between 20,000 and 30,000 older women and between 10,000 and 20,000 older men. Our results also suggest that the hourly wage subsidy yields the highest welfare gains.
Subjects: 
in-work support
wage subsidies
unemployment
elderly workers
JEL: 
J48
J21
H21
Document Type: 
Working Paper

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