'Making work pay' in a rationed labour market
By: by Olivier Bargain ... [et al.].
Series: Discussion paper -- no. 2033; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2033
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] /
Subjects: Welfare recipients; Employment; Labor productivity; Wages; Manpower policy
Description: "We assess the labour supply effects of two 'making work pay' reforms in Germany. We provide evidence in favour of policies that distinguish between low effort and low productivity by targeting individuals with low wages rather than individuals with low earnings. In assessing the policies we account for demand-side constraints by using a double-hurdle model. We identify and decompose the potential bias of labour supply elasticities derived in standard unconstrained models. Although this bias is not significant when assessing policies which mainly target voluntarily unemployed workers (typically secondary earners), it is substantial for policies which affect groups with high shares of involuntary unemployment"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 3/27/2006.

Includes bibliographical references.

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