Making Work Pay for the Elderly Unemployed --Evaluating Alternative Policy Reforms for Germany - 10.1628/001522108X374197 - Mohr Siebeck
Economics

Peter Haan, Viktor Steiner

Making Work Pay for the Elderly Unemployed --Evaluating Alternative Policy Reforms for Germany

Section: Articles
FinanzArchiv (FA)

Volume 64 () / Issue 3, pp. 380-402 (23)

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We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) an employment bonus in the form of subsidized social security contributions on low wages. The work-incentive, labor-supply, and welfare effects of these policy reforms are analyzed on the basis of a behavioral microsimulation model for Germany. We find that the simulated labor-supply effects of the three policy reforms would be rather similar and of moderate size. Our results also suggest that the hourly wage subsidy yields the highest welfare gains.
Authors/Editors

Peter Haan No current data available.

Viktor Steiner No current data available.