Based on a further development of the ZEW microsimulation model of the German tax and transfer system, this study examines fiscal and individual net returns as well as rates of return from investments in…
Welfare programs are important in terms of reducing poverty, although they create incentives for recipients to maximize their income by either reducing their labor supply or manipulating their taxable income. In…
We structurally estimate an equilibrium search model using German administrative data and use this for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not…
Over the 2000s, many federal states in Germany shortened the duration of secondary school by one year while keeping the curriculum unchanged. Exploiting quasi-experimental variation due to the staggered…
We ask whether a pay-as-you-go financed social security system is welfare improving in an economy with idiosyncratic productivity and aggregate business cycle risk. We show analytically that the whole welfare…