Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24676
Authors: 
Clauss, Markus
Schnabel, Reinhold
Year of Publication: 
2008
Series/Report no.: 
ZEW Discussion Papers 08-006
Abstract: 
We estimate the effects of the reform of the German Unemployment Insurance that replaced the wage related Unemployment Assistance with an income maintenance program and stronger means testing. We model the tax-benefit system and use the Socio-Economic Panel. We estimate a discrete labour supply model and simulate the behavioural and distributional effects using the pseudo-distribution method. Poverty and inequality decline overall, since households with children and low income gain, while those who used to earn high wages and received high unemployment transfers lose most. The behavioural responses mitigate the redistributive impact of the reform.
Subjects: 
distribution analysis
household labour supply
microsimulation
poverty
Germany
JEL: 
H31
J22
I38
I32
D31
Document Type: 
Working Paper

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