IDEAS home Printed from https://ideas.repec.org/p/diw/diwsop/diw_sp770.html
   My bibliography  Save this paper

Life-Cycle Incidence of Family Policy Measures in Germany: Evidence from a Dynamic Microsimulation Model

Author

Listed:
  • Holger Bonin
  • Karsten Reuss
  • Holger Stichnoth

Abstract

This paper quantifies the life-cycle incidence of key family policy measures in Germany. The analysis is based on a novel dynamic microsimulation model that combines simulated family life-cycles for a base population from the 2009 wave of the German Socio-Economic Panel (SOEP) with a comprehensive tax-benefit model. The results indicate that households in Germany benefit considerably from family- and marriage-related transfers, yet also reveal substantial variation behindthe population average. Moreover, it is shown that some measures, such as income tax splitting, may make individuals in fact worse off, in financial terms, over the long course, as a result of negative labour supply incentives which are reinforced through detrimental effects on human capital accumulation.

Suggested Citation

  • Holger Bonin & Karsten Reuss & Holger Stichnoth, 2015. "Life-Cycle Incidence of Family Policy Measures in Germany: Evidence from a Dynamic Microsimulation Model," SOEPpapers on Multidisciplinary Panel Data Research 770, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp770
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.510616.de/diw_sp0770.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Holger Bonin & Reinhold Schnabel & Holger Stichnoth, 2014. "Zur Effizienz der ehe- und familienbezogenen Leistungen in Deutschland im Hinblick auf soziale Sicherungs- und Beschäftigungsziele," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 83(1), pages 29-48.
    2. Justin McCrary & Heather Royer, 2011. "The Effect of Female Education on Fertility and Infant Health: Evidence from School Entry Policies Using Exact Date of Birth," American Economic Review, American Economic Association, vol. 101(1), pages 158-195, February.
    3. Bonin, Holger & Pfeiffer, Friedhelm & Reuß, Karsten & Stichnoth, Holger, 2013. "Mikrosimulation ausgewählter ehe- und familienbezogener Leistungen im Lebenszyklus: Gutachten für die Prognos AG. Forschungsbericht," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 111441.
    4. Moshe Hazan & Hosny Zoabi, 2015. "Do Highly Educated Women Choose Smaller Families?," Economic Journal, Royal Economic Society, vol. 125(587), pages 1191-1226, September.
    5. Nelissen, Jan H. M., 1998. "Annual versus lifetime income redistribution by social security," Journal of Public Economics, Elsevier, vol. 68(2), pages 223-249, May.
    6. Peter Levell & Jonathan Shaw, 2016. "Constructing Full Adult Life-cycles from Short Panels," International Journal of Microsimulation, International Microsimulation Association, vol. 9(2), pages 5-40.
    7. Audra J. Bowlus & Jean-Marc Robin, 2012. "An International Comparison Of Lifetime Inequality: How Continental Europe Resembles North America," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1236-1262, December.
    8. Immervoll, Herwig & Lindstrom, Klaw & Mustonen, Esko & Viitamaki, Heikki, 2005. "Static data 'ageing' techniques: accounting for population changes in tax-benefit microsimulation models," EUROMOD Working Papers EM7/05, EUROMOD at the Institute for Social and Economic Research.
    9. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Martin Werding & Herbert Hofmann, 2006. "Die fiskalische Bilanz eines Kindes im deutschen Steuer- und Sozialsystem," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(02), pages 28-36, January.
    11. Hazan, Moshe & Zoabi, Hosny, 2012. "Do Highly Educated Women Choose Smaller Families?," Foerder Institute for Economic Research Working Papers 275751, Tel-Aviv University > Foerder Institute for Economic Research.
    12. Jinjing Li & Cathal O'Donoghue, 2013. "A survey of dynamic microsimulation models: uses, model structure and methodology," International Journal of Microsimulation, International Microsimulation Association, vol. 6(2), pages 3-55.
    13. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Dynamic microsimulation; family policy; Germany;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp770. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek). General contact details of provider: http://edirc.repec.org/data/sodiwde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.