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In view of rising wage inequality and increasing poverty, the introduction of a legal minimum wage has recently become … ineffective in reducing poverty, even if it led to a substantial increase in hourly wages at the bottom of the wage distribution … system of meanstested income support. -- minimum wage, wage distribution ; working poor ; poverty reduction ; microsimulation …
Persistent link: https://www.econbiz.de/10003726086
In view of rising wage and income inequality, the introduction of a legal minimum wage has recently become an important policy issue in Germany. We analyze the distributional effects of a nationwide legal minimum wage of 7.50 € per hour on the basis of a microsimulation model which accounts...
Persistent link: https://www.econbiz.de/10003962265
In this paper we empirically derive the welfare effects of a shift from joint taxation with full income splitting to a revenue neutral system of individual taxation in Germany. For the empirical welfare evaluation we estimate the preference heterogeneity in the population and use normative...
Persistent link: https://www.econbiz.de/10009579606
The aim of this paper is to apply recently proposed individual welfare measures in the context of random utility models of labour supply. Contrary to the standard practice of using reference preferences and wages, these measures preserve preference heterogeneity in the normative step of the...
Persistent link: https://www.econbiz.de/10009269007