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Total employment in Germany is supposed to increase if people could realize their desired working hours. However, this back-of-the-envelope calculation overestimates the effect of loosening hours constraints, because even in a very flexible labor market there will exist hours restrictions for...
Persistent link: https://www.econbiz.de/10011445026
We compare two options of integrating discrete working time choice of heterogenous households into a general equilibrium model. The first, known from the literature, produces household heterogeneity through a working time preference parameter. We contrast this with a model that directly...
Persistent link: https://www.econbiz.de/10003114240
Persistent link: https://www.econbiz.de/10001945547
considered an adequate policy to reduce unemployment. From the perspective of economic theory the outcome is in general ambiguous …
Persistent link: https://www.econbiz.de/10002906072
The labor supply of West German married and cohabiting couples is analyzed using a discrete choice model. Following van Soest (1995), the labor supply decision is based on a household utility function which is determined by the leisure of the two spouses and net household income. Furthermore,...
Persistent link: https://www.econbiz.de/10011442317
general equilibrium model, this paper shows that skilled insiders in the USA enjoy higher rents and increase the skilled wage … outsiders in the USA do not possess a powerful credible threat to improve their position. This is a consequence from higher … training and education costs in the USA for unskilled employees and unemployed. In Germany, the lower skill wage mark-up leads …
Persistent link: https://www.econbiz.de/10011444759
Previous reviews of static labor supply estimations concentrate mainly on the evidence from the 1980s and 1990s, Anglo-Saxon countries and early generations of labor supply modeling. This paper provides a fresh characterization of steady-state labor supply elasticities for Western Europe and the...
Persistent link: https://www.econbiz.de/10010194452
Labour market reforms that are designed to stimulate labour supply at the lower end of the wage distribution can never be precisely restricted to affect only the target group. Spillovers to and feedback from other segments of the labour market are unavoidable and may counteract the direct...
Persistent link: https://www.econbiz.de/10003728424
Labour market reforms that are designed to stimulate labour supply at the lower end of the wage distribution can never be precisely restricted to affect only the target group. Spillovers to and feedback from other segments of the labour market are unavoidable and may counteract the direct...
Persistent link: https://www.econbiz.de/10003873325
This chapter reviews options of labour market modelling in a CGE framework. On the labour supply side, two principal modelling options are distinguished and discussed: aggregated, representative households and microsimulation based on individual household data. On the labour demand side, we...
Persistent link: https://www.econbiz.de/10009424086