Generous income support programs as provided by European welfare states have often been blamed to hamper employment. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take up work. Using German microdata over the period 1993 -...

Existing research has found little to no evidence for an added worker effect. However, studies to date have only analysed individuals' actual labor supply responses to their partners' job loss, neglecting to consider a potential mismatch between desired and actual labor supply adjustments. Using...

Generous income support programs as provided by European welfare states have often been blamed to reduce work incentives for the lowskilled and to increase durations of unemployment. Standard studies measure work incentives based on annual income concepts. This paper analyzes work incentives...