In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effect of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven rationing risk that might prevent individuals from...

We analyze the effect of imposed benefit sanctions on the unemployment-to-employment transition of unemployed people entitled to unemployment compensation on the basis of register data from the German Federal Employment Agency. We combine propensity score matching with a discrete-time hazard...

In view of rising wage inequality and increasing poverty, the introduction of a legal minimum wage has recently become an important policy issue in Germany. We analyze the distributional effects of the introduction of a nationwide legal minimum wage of € 7.5 per hour on the basis of a...

Fostering and supporting start-up businesses by unemployed persons has become an increasingly important issue in many European countries. These new ventures are being supported by various governmental programs. Potential benefits include not only the end of unemployment for the new entrepreneur...

This paper evaluates the impact of three major expansions in leave coverage in Germany on the long-run education and labor market outcomes of children. Evaluation of three policy reforms as opposed to a single reform enables us to analyze whether the impact of paid leave differs from that of...

We investigate the wage effects of privatization using person-level firm-based panel datasets from one privatized and one nonprivatized public sector firm in the same country for the years immediately before and after privatization. Thus, we can analyze the before-after effects of privatization...

For Germany, we analyse the (relative) effects of participation in several active labour market programmes on the employment prospects of participants. First, our results show that different matching algorithms result in different severe problems of common support. Second, we obtain favourable...

Our paper estimates the average effect of wage subsidies - paid to employers for a limited period of time - on the labour market prospects of needy job-seekers without access to insurance-paid 'unemployment benefit I'. The results show that wage subsidies had large and significant favourable...

Die Ich-AG (Existenzgründungszuschuss) war eines der zentralen Instrumente, das im Rahmen der "Hartz-Reformen" in den arbeitsmarktpolitischen Kanon aufgenommen wurde. Zusammen mit dem bereits seit langem bekannten Überbrückungsgeld wurden damit zwischen 2003 und 2006 mehr als eine Million...

Using three representative individual-level datasets for West Germany, we estimate the effect of the extension of maternity leave from 18 to 36 months on young women's participation in job-related training. Specifically, we employ difference-indifferences identification strategies using control...