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Evaluating the Cost‐Effectiveness of In‐Work Benefits: A Simulation Study for Switzerland

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  • Michael Gerfin
  • Robert E. Leu

Abstract

. Income support for working low‐income families (the ‘working poor’) is on top of the political agenda in Switzerland. The current social assistance system is considered inadequate to support working poor households. Several European countries have introduced in‐work benefits in order to make work pay. Based on a structural labour supply model, this paper provides microsimulation results of the effects of introducing different schemes of in‐work benefits. It turns out that adding a minimum hours requirement to the current social assistance system is the most cost‐effective reform. One‐third of expected costs can be attributed to behavioural changes in labour supply.

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  • Michael Gerfin & Robert E. Leu, 2007. "Evaluating the Cost‐Effectiveness of In‐Work Benefits: A Simulation Study for Switzerland," German Economic Review, Verein für Socialpolitik, vol. 8(4), pages 447-467, November.
    • Handle: RePEc:bla:germec:v:8:y:2007:i:4:p:447-467
    DOI: 10.1111/j.1468-0475.2007.00414.x
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    References listed on IDEAS

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    Cited by:

    1. Moreno Baruffini, 2019. "Perceptions of Job Insecurity in Switzerland: Evidence Using Verbal and Numerical Descriptors," IJERPH, MDPI, vol. 16(10), pages 1-18, May.

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