Employment Effects of Welfare Reforms : Evidence from a Dynamic Structural Life-Cycle Model

This file is part of IDEAS, which uses RePEc data

Employment Effects of Welfare Reforms : Evidence from a Dynamic Structural Life-Cycle Model

Author Info

Peter Haan
Victoria Prowse
Arne Uhlendorff

Additional information is available for the following registered author(s):

Abstract

In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effects of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven rationing risk that might prevent individuals from realizing their optimal labor supply state, resulting in involuntary unemployment. We use this framework to study the employment effects of transforming a traditional welfare state, as is currently in place in Germany, towards a more Anglo-American system in which a large proportion of transfers are paid to the working poor.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 790.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 45 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwwpp:dp790

Contact details of provider:
Postal: Mohrenstra�e 58, D-10117 Berlin
Phone: xx49-30-89789-0
Fax: xx49-30-89789-200
Email:
Web page: http://www.diw.de/english
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Bibliothek).

Other versions of this item:

Paper
- Peter Haan & Victoria Prowse & Arne Uhlendorff, 2008. "Employment effects of welfare reforms - Evidence from a dynamic structural life-cycle model," Economics Series Working Papers 391, University of Oxford, Department of Economics. [Downloadable!]
- Peter Haan & Victoria Prowse & Arne Uhlendorff, 2008. "Employment effects of welfare reforms: Evidence from a dynamic structural life-cycle model," PSE Working Papers 2008-25, PSE (Ecole normale supérieure). [Downloadable!]
- Haan, Peter & Prowse, Victoria L. & Uhlendorff, Arne, 2008. "Employment Effects of Welfare Reforms: Evidence from a Dynamic Structural Life-Cycle Model," IZA Discussion Papers 3480, Institute for the Study of Labor (IZA). [Downloadable!]

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-05-24 (All new papers)
NEP-DGE-2008-05-24 (Dynamic General Equilibrium)
NEP-LAB-2008-05-24 (Labour Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Rust, John, 1987. "Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher," Econometrica, Econometric Society, vol. 55(5), pages 999-1033, September. [Downloadable!] (restricted)
Jérôme Adda & Christian Dustmann & Costas Meghir & Jean-Marc Robin, 2006. "Career Progression and Formal versus On-the-Job Training," IZA Discussion Papers 2260, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- J. Adda & C. Dustmann, 2005. "Career Progression and Formal versus On the Job Training," 2005 Meeting Papers 141, Society for Economic Dynamics.
- Adda, Jerome & Dustmann, Christian & Meghir, Costas & Robin, Jean-Marc, 2007. "Career Progression and Formal versus On-the-Job Training," CEPR Discussion Papers 6087, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Jerome Adda & Christian Dustmann & Costas Meghir & Jean-Marc Robin, 2006. "Career progression and formal versus on-the-job training," IFS Working Papers W06/16, Institute for Fiscal Studies. [Downloadable!]
- Adda & Dustmann, 2004. "Career Progression and Formal versus on the Job Training," Econometric Society 2004 North American Winter Meetings 492, Econometric Society. [Downloadable!]
Adda, Jérôme & Costa Dias, Mònica & Meghir, Costas & Sianesi, Barbara, 2007. "Labour market programmes and labour market outcomes: a study of the Swedish active labour market interventions," Working Paper Series 2007:27, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
MaCurdy, Thomas E, 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1059-85, December. [Downloadable!] (restricted)
Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March. [Downloadable!]
Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May. [Downloadable!] (restricted)
Wolpin, Kenneth I, 1984. "An Estimable Dynamic Stochastic Model of Fertility and Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 852-74, October. [Downloadable!] (restricted)
Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
Other versions:
- Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
James P. Ziliak & Thomas J. Kniesner, 1999. "Estimating Life Cycle Labor Supply Tax Effects," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 326-359, April. [Downloadable!] (restricted)
Other versions:
- Ziliak, J. & Kniesner, T.J., 1995. "Estimating Life-Cycle Labor Supply tax Effects," Papers 9589, Tilburg - Center for Economic Research.
Arjan Heyma, 2004. "A structural dynamic analysis of retirement behaviour in the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 739-759. [Downloadable!]
Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
Other versions:
- Michael P. Keane & Kenneth I. Wolpin, 1995. "The career decisions of young men," Working Papers 559, Federal Reserve Bank of Minneapolis. [Downloadable!]
van der Klaauw, Wilbert, 1996. "Female Labour Supply and Marital Status Decisions: A Life-Cycle Model," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 199-235, April. [Downloadable!] (restricted)
Other versions:
- Van Der Klaauw, W., 1993. "Female Labor Supply and Marital Status Decisions: A Life Cycle Model," Working Papers 93-23, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
Kimmel, Jean & Kniesner, Thomas J., 1998. "New evidence on labor supply:: Employment versus hours elasticities by sex and marital status," Journal of Monetary Economics, Elsevier, vol. 42(2), pages 289-301, July. [Downloadable!] (restricted)
McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May. [Downloadable!] (restricted)

Full references

Statistics
Access and download statistics

Did you know? All top Economics journals are listed on RePEc.

This page was last updated on 2008-8-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.