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Wohlfahrts- und Verteilungseffekte eines allgemeinen Freibetrags bei den Sozialabgaben (Welfare and distribution effects of a general fixed allowance for social insurance contributions)

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  • Schneider, Hilmar
  • Bonin, Holger

Abstract

"The paper simulates the labor market impact of a fixed allowance for social insurance contributions. Based on a discrete choice labor supply model estimated using data from the German Socio-Economic Panel, we evaluate household utility changes triggered by the reform, including behavioral responses. Directly the reform raises individual welfare throughout. However, refinancing its substantial fiscal costs through a general consumption tax reduces aggregate labor supply and household utility levels, with progressive absolute losses. A poll tax preserves the immediate positive labor supply effect, but reverses entirely the benefits from the allowance except for households in the lowest income decile." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Schneider, Hilmar & Bonin, Holger, 2005. "Wohlfahrts- und Verteilungseffekte eines allgemeinen Freibetrags bei den Sozialabgaben (Welfare and distribution effects of a general fixed allowance for social insurance contributions)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(4), pages 475-492.
    • Handle: RePEc:iab:iabzaf:v:38:i:4:p:475-492
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    References listed on IDEAS

    as
    1. 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.
    2. Michael Gerfin & Robert E. Leu, 2003. "The Impact of In-Work Benefits on Poverty and Household Labour Supply. A simulation study for Switzerland," Diskussionsschriften dp0304, Universitaet Bern, Departement Volkswirtschaft.
    3. Schneider, Hilmar & Zimmermann, Klaus F. & Bonin, Holger & Brenke, Karl & de New, John & Kempe, Wolfram, 2002. "Beschäftigungspotenziale einer dualen Förderstrategie im Niedriglohnbereich," IZA Research Reports 5, Institute of Labor Economics (IZA).
    4. Hausman, Jerry A., 1979. "The econometrics of labor supply on convex budget sets," Economics Letters, Elsevier, vol. 3(2), pages 171-174.
    5. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Household Labor Supply Effects of Low-Wage Subsidies in Germany," IZA Discussion Papers 637, Institute of Labor Economics (IZA).
    6. Olivier Bargain & Marco Caliendo & Peter Haan & Kristian Orsini, 2005. "'Making Work Pay' in a Rationed Labour Market: The Mini-Job Reform in Germany," Discussion Papers of DIW Berlin 536, DIW Berlin, German Institute for Economic Research.
    7. Hausman, Jerry & Ruud, Paul, 1984. "Family Labor Supply with Taxes," American Economic Review, American Economic Association, vol. 74(2), pages 242-248, May.
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