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The Impact of In-Work Benefits on Poverty and Household Labour Supply A Simulation Study for Switzerland Author info | Abstract | Publisher info | Download info | Related research | Statistics Gerfin, Michael () (University of Bern and IZA Bonn)
Leu, Robert E. (University of Bern)
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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. Labour unions propose the introduction of a general minimum wage, whereas the Swiss government promotes in-work benefits. 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-efficient reform. Minimum wages are ineffective in fighting poverty.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
762.
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Length: 34 pages
Date of creation: Apr 2003Date of revision:
Handle: RePEc:iza:izadps:dp762Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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Keywords: tax credits ; household labour supply ; microsimulation ; poverty ; Other versions of this item:
Find related papers by JEL classification: I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
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Abul Naga Ramses & Kolodziejczyk Christophe & Muller Tobias, 2007.
"The Redistributive Impact of Alternative Income Maintenance Schemes: A Microsimulation Study using Swiss Data ,"
Cahiers du Département d'Econométrie
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