analyze transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working …. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits. …

as well as increasing employment rates of recipients of social assistance. On the basis of a behavioral microsimulation … supply due to the generous allowances for marginal employment under the current and the planned regulations of unemployment … assistance. As an alternative, we analyze a reform proposal which reduces financial incentives for marginal employment not …