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Heterogeneous labour markets in a microsimulation-AGE model : application to welfare reform in Germany

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Author Info

  • Boeters, Stefan
  • Feil, Michael

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"Labour market reforms that are designed to stimulate labour supply at the lower end of the wage distribution can never be precisely restricted to affect only the target group. Spillovers to and feedback from other segments of the labour market are unavoidable and may counteract the direct effects of the reform. An adequate representation of heterogeneous labour markets becomes therefore an important issue for the assessment of reforms. We analyse the possible interactions between labour market segments in a combined, consistent microsimulation-AGE model with a flexible representation of substitution possibilities and different wage-forming regimes. We look at a stylised reform and find labour-demand cross-price elasticities between the low and medium skilled to be the main drivers of the results. Interaction with the high-skilled segment is less pronounced." (Author's abstract, IAB-Doku) ((en))

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Bibliographic Info

Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200825.

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Length: 48 pages
Date of creation: 18 Jun 2008
Date of revision:
Publication status: published in: Computational Economics, Vol. 33, No. 4 (2009), p. 305-335
Handle: RePEc:iab:iabdpa:200825

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Keywords: Niedrigqualifizierte; mittlere Qualifikation; Hochqualifizierte; Lohnfindung; Anreizsystem; Leistungskürzung; Arbeitslose; aktivierende Arbeitsmarktpolitik - Auswirkungen; Beschäftigungseffekte; Erwerbsverhalten; Arbeitskräfteangebot; Lohnhöhe; Einkommensverteilung; Bruttoinlandsprodukt; öffentliche Einnahmen; Konsum; Investitionen; Kapitalmobilität; Arbeitsmarktmodell; Heterogenität;

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References

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Citations

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Cited by:
  1. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.
  2. Boeters, Stefan, 2010. "Optimal tax progressivity in unionised labour markets: Simulation results for Germany," ZEW Discussion Papers 10-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Boeters, Stefan, 2011. "Optimal tax progressivity in unionised labour markets: What are the driving forces?," Economic Modelling, Elsevier, vol. 28(5), pages 2282-2295, September.
  4. Stefan Boeters & Luc Savard, 2011. "The Labour Market in CGE Models," Cahiers de recherche 11-20, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  5. Edlira Narazani, 2011. "Evidences on Household Labour Supply when Labour Demand is not Perfectly Elastic Keywords: Labour Supply, Labour Demand, Equilibrium," CHILD Working Papers wp22_11, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  6. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
  7. Bruckmeier, Kerstin & Graf, Tobias & Rudolph, Helmut, 2008. "Working poor: Arm oder bedürftig? : eine Analyse zur Erwerbstätigkeit in der SGB-II-Grundsicherung mit Verwaltungsdaten," IAB Discussion Paper 200834, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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