Shifting taxes from labor income to consumption is regularly suggested as a measure to induce work incentives. We investigate the effect of increases in the Value Added Tax on labor supply and the income distribution in Germany, which is compensated by a revenue-neutral reduction in...

Long term panel data enable researchers to construct Life Satisfaction (LS) trajectories for individuals over time. In this paper we analyse the trajectories of respondents in the German Socio-Economic Panel who recorded their LS for 20 consecutive years in 1991 - 2010. Previous research has...

An adequate theory of Life Satisfaction (LS) needs to take account of both factors that tend to stabilise LS and those that change it. The most widely accepted theory in the recent past – set-point theory – focussed solely on stability (Brickman and Campbell, 1971; Lykken and Tellegen, 1996)....

Using both household and linked employer-employee data for Germany, we assess the effects of non-union representation in the form of works councils on (1) individual sickness absence rates and (2) a subjective measure of personnel problems due to sickness absence as perceived by a firm's...

This paper examines to what extent non-random sorting of spouses affects earnings inequality while explicitly disentangling effects from increasing assortativeness in couple formation from changing patterns of couples' labor supply behavior. Using German micro data, earnings distributions of...

In 1996, statutory sick pay was reduced for private sector workers in Germany. Using the empirical observation that trade union members are dismissed less often than non-members, we construct a model to predict how absence behaviour will respond to the sick pay reform. We show that union members...

There are strong two-way links between parent and child happiness (life satisfaction), even for "children" who have grown up, moved to their own home and partnered themselves. German panel evidence shows that transmission of (un)happiness from parents to children is partly due to transmission of...

The German reunification, which several economists have called a "natural" experiment, provides the unique possibility to inquire the impact of migration on subjective well-being (SWB). The main goal of the research is to assessing the impact of adaptation, social comparison and relative...