Evaluating the German "mini-job" reform using a true natural experiment
By: by Marco Caliendo, Katharina Wrohlich
Contributors: Wrohlich, Katharina
Series: Discussion paper -- no. 2041; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2041
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] /
Subjects: Incentives in industry; Low-income consumers; Tax exemption
Description: "Increasing work incentives for people with low incomes is a common topic in the policy debate across European countries. The "Mini-Job" reform in Germany -- introduced on April 1, 2003 -- can be seen in line with these policies, exempting labour income below a certain threshold from taxes and employees' social security contributions. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the German Socio-Economic Panel, that allows us to distinguish groups that are (or are not) affected by the reform. To account for seasonal effects we additionally use a difference-in-differences strategy. The results show that the short-run effects of the reform are limited. We find no significant short-run effects for marginal employment. However, there is evidence that single men who are already employed react immediately and increase secondary job holding"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 3/28/2006.

Includes bibliographical references.

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Mode of access: World Wide Web.