Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24027
Authors: 
Schnabel, Reinhold
Gürtzgen, Nicole
Boeters, Stefan
Year of Publication: 
2003
Series/Report no.: 
ZEW Discussion Papers 03-70
Abstract: 
This paper analyses the effects of a social assistance reform in Germany. In contrast to studies which are based on microsimulation methods we use a computable general equilibrium model which incorporates a discrete choice model of labour supply to simulate a variety of reform scenarios. The main contribution is that we are able to identify general equilibrium effects of a reform on wages and unemployment. The simulation results show that general equilibrium wage reactions tend to mitigate labour supply effects. Moreover, the simulations indicate that substantial employment effects are to be expected only from major cuts in welfare payments.
Subjects: 
social assistance
discrete labour supply model
applied general equilibrium
JEL: 
J22
D58
J51
Document Type: 
Working Paper

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