Turning unemployment into self-employment has become a major focus of German activelabour market policy (ALMP) in recent years. If effective, this would not only reduceGermany’s persistently high unemployment rate, but also increase its notoriously low selfemploymentrate. Empirical evidence on...

This paper extends previous research about the determinants of reservation wages byanalysing the effect of progressive income taxation on the ratio between reservation and netmarket wages...