This paper contributes to the policy-relevant question whether self-employment is a way outof (long-term) unemployment. We estimate the relationship between the entry rate into selfemploymentand previous (long-term) unemployment on the basis of pseudo-panel data forGermany in the period 1996-2002...

Incentives to invest in higher education are affected by both the direct wage effect of human capital investments and the indirect wage effect resulting from lower unemployment risks and shorter spells in unemployment associated with higher educated. We analyse the returns to education in...

We study three budget-neutral reforms of the German tax and transfer system designed to improve work incentives for people with low incomes: a feasible flat tax reform that provides a basic income which is equal to the current level of the means tested unemployment benefit, and two alternative...

We study three budget-neutral reforms of the German tax and transfer system designed to improve work incentives for people with low incomes: a feasible flat tax reform that provides a basic income which is equal to the current level of the means tested unemployment benefit, and two alternative...

Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply, where involuntary unemployment as well as over- and underemployment are modelled in a theoretically consistent way. Using data from the German Socio-Economic Panel (SOEP) and...

Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the...