Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290445 
Year of Publication: 
2019
Citation: 
[Journal:] Naše gospodarstvo / Our Economy [ISSN:] 2385-8052 [Volume:] 65 [Issue:] 3 [Year:] 2019 [Pages:] 1-22
Publisher: 
Sciendo, Warsaw
Abstract: 
Low labour market participation, together with the high effective tax wedge at low wage levels, create a fertile ground for the introduction of the in-work benefits (IWB) in Serbia. Our paper provides an ex-ante evaluation of the two IWB schemes, directed at stimulating the labour supply and more equal income distribution. The methodological approach combines the tax-and-benefit microsimulation model with the discrete labour supply model. Our results show that both individual and family-based IWB schemes would considerably boost labour market participation, although family-based benefits would have disincentivizing effects for the secondary earners in couples. Most of the behavioural changes take place among the poorest individuals, with significant redistributive effects.
Subjects: 
in-work benefits
labour supply
inequality
discrete choice model
microsimulation
JEL: 
J22
H24
D31
I32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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