This paper analyses the effects of a social assistance reform in Germany. In contrast to studies which are based on microsimulation methods we use a computable general equilibrium model which incorporates a discrete choice model of labour supply to simulate a variety of reform scenarios. The...

The 2014 pension reform has three main components. First disability pensions have been increased by about two earnings points, an average monthly gain of 40 euros. In addition low wages in the four years preceding disability-related retirement will now be disregarded. However, since these new...