social programs, savings and the labor supplies of all adult household members. The optimal policy mix focuses mainly on … Social Assistance, which provides a permanent universal household income oor, with a minor role for temporary earnings …-related Unemployment Insurance. Reecting that married couples obtain intra-household insurance by making labor supply choices for both …

, savings, and the labor supplies of all adult household members. We show that the optimal policy mix is dominated by moderately … generous social assistance, which guarantees a permanent universal minimum household income, with only a minor role for …

by age, education, wealth, sex and household composition. In aggregate, social assistance dominates unemployment …

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, heterogeneity of preferences and the German tax and benefit system are …