Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52100
Authors: 
Peichl, Andreas
Siegloch, Sebastian
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5350
Abstract: 
When assessing the effects of policy reforms on the labor market, most studies only focus on labor supply. The interaction of supply and demand side is not explicitly modeled, which might lead to biased estimates of potential labor market outcomes. This paper proposes a straightforward method to remedy this shortcoming. We use information on firms' labor demand behavior and feed them into a structural labor supply model, completing the partial analysis of the labor market on the microdata level. We show the performance and relevance of our extension by introducing a pure labor supply side reform, the workfare concept, in Germany and simulating the labor market outcome of the reform. We find that demand effects offset about 25 percent of the positive labor supply effect of the policy reform.
Subjects: 
labor supply
labor demand
policy reform
workfare
JEL: 
J22
J23
J68
Document Type: 
Working Paper

Files in This Item:
File
Size
224.58 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.