. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take … incentives at the extensive margin measured by the Participation Tax Rate (PTR), particularly for low-income individuals. Work … incentives are even higher if the time horizon is extended to more than one year, pointing at an overestimation of the …

incentives for lower income classes and to increase durations of unemployment. Standard studies measure work incentives based on … annual income concepts. This paper analyzes how work incentives inherent in the German tax-benefit system evolve when … incentives increased even more than short-term work incentives. Particularly for middle-income individuals, this is largely …