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Making Work Pay for the Elderly Unemployed - Evaluating Alternative Policy Reforms for Germany

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Author Info
Peter Haan
Viktor Steiner
Abstract

We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) an employment bonus in the form of subsidized social security contributions on low wages. The work-incentive, labor-supply, and welfare effects of these policy reforms are analyzed on the basis of a behavioral microsimulation model for Germany. We find that the simulated labor-supply effects of the three policy reforms would be rather similar and of moderate size. Our results also suggest that the hourly wage subsidy yields the highest welfare gains.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 64 (2008)
Issue (Month): 3 (September)
Pages: 380-402
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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200809)64:3_380:mwpfte_2.0.tx_2-e

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Web page: http://www.mohr.de/fa

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Related research
Keywords: in-work support; wage subsidies; unemployment; elderly workers;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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This page was last updated on 2009-12-1.

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