The sustainability of Welfare States requires high employment/high participation to raise the tax base and avoid distortions. To analyse labour market participation decisions in a world with market frictions, we propose and solve a three-state macro model of the labour market. We show that...

This paper extends the theory and measurement of the marginal cost of public funds (MCF) to account for labour force participation responses. Our work is motivated by the emerging consensus in the empirical literature that extensive (participation) responses are more important than intensive...

This study on market and non-market labor supply and taxes is based on a theoretical microeconomic model with multiple labor supply in the formal and informal economy. This multiple time allocation model, which explicitly takes into account taxes, transfer payments, socioeconomic characteristics...

Up to now the discussion about new working time arrangements and flexible working times has lacked an empirical foundation based on personal micro data. It is the task of this study to analyze deviations from what we call a normal work day in two dimensions: first, in respect of the timing of...

In recent years new patterns of working time have appeared along with an increased flexibility concerning timing of work and the decay of the regular working day. We analyze the timing of working time for both self-employed and employees based on the German time budget study 1991/92. In the...

Traditional welfare analyses based on money income needs to be broadened by its time dimension. In the course of time the traditional full-time work is diminishing and new labour arrangements are discussed (keyword: flexible labour markets). Our study is contributing to economic well-being by...

This Paper studies the dynamic impact of mass migration from the Former Soviet Union to Israel on natives’ labour market outcomes. Specifically, we attempt to distinguish between the short-run and long-run effects of immigrants on natives’ wages and employment. The transition of immigrants...

We model educational investment and labour supply in a competitive economy with home and market production. Heterogeneous workers are assumed to have different productivities both at home and in the workplace. Following Rosen (1983), we show that there are private increasing returns to education...