Krebs, Tom; Scheffel, Martin - 2016
three reforms have positive short-run and long-run effects on employment, wages, and output. The quantitative effects of the …) and ii) taken together increase employment by 1.6 percent, potential output by 1.5 percent, real hourly pre-tax wages in … the low-wage sector by 3 percent, and real hourly pre-tax wages of women with children by 2.7 percent. The two reforms …