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. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.
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Volume (Year): 8 (2007) Issue (Month): (November) Pages: 447-467 Download reference. The following formats are available: HTML
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