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 evaluate a pilot workfare project of a Berlin city community to integrate young people in social assistance into the labor market. Reference data are generated in collaboration with the German Employment Office. The participation effect is found to be positive and of relevant size, but not...