Stop the grief and back to work! An evaluation of the government's plan to activate widows and widowers
AbstractThe Belgian “Generations Pact” contained a measure which aims at removing an inactivity trap for people who benefit from a survivor pension. In this paper we use a sample of administrative data from the “Datawarehouse labour market and social protection” and the microsimulation model MIMOSIS to assess the labour supply effects of this reform proposal. In a first step we estimate a standard discrete choice labour supply model for several subgroups. Subsequently we model the proposed reform in the tax and benefit rules and predict the change in desired labour supply of the targeted group. The proposed reform would have a significant positive effect on the labour supply of widows, but the effects are weak amongst low income survivor pensioners.
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Bibliographic InfoArticle provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.
Volume (Year): 49 (2006)
Issue (Month): 2 ()
Tax-benefit Systems; Micro simulation; Household Labour Supply;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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