The optimal design of low income support is examined using a structural labour supplymodel. The approach incorporates unobserved heterogeneity, fixed costs of work, childcarecosts and the detailed non-convexities of the tax and transfer system. The analysis considerspurely Pareto improving...

Seguro Popular (SP) was introduced in 2002 to provide health insurance to the 50 million Mexicans without Social Security. This paper tests whether the program has had unintended consequences, distorting workers' incentives to operate in the informal sector. The analysis examines the impact of...

This paper examines the labour supply disincentives of the Income Support system among single mothers with no qualifications in the UK. It uses a regression discontinuity approach that exploits the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose...

Bringing welfare recipients into jobs is a major goal of German labour market policy since a reform of the year 2005. Direct job creation providing participants with tem-porary subsidized jobs mainly in the non-profit sector plays an important role for achieving this goal. There are three...

This paper investigates labor supply and redistributive effects of in-work benefits for Italian married couples using a tax-benefit microsimulation model and a multi-sectoral discrete choice model of labor supply. We consider two in-work benefit schemes following the key principles of the Earned...

In this paper we analyze the effects of Minimum Guaranteed Income (MGI) schemes on labour supply of Italian married couples by applying a behavioural micro-simulation tax-benefit model. The Tax-Benefit Model applied is the static micro-simulation model of EUROMOD. A household labour supply model...

We develop and estimate a microeconometric model of household labour supply in four European countries representative of different economies and welfare policy regimes: Denmark, Italy, Portugal and United Kingdom. We then simulate, under the constraint of constant total net tax revenue, the...

The paper analyses the incentive and the redistributive effects of introducing either a family based or an individual in-work benefit in Italy. The reforms are financed through the abolition of the existing tax credit targeted at inactive people. In-work benefits are means-tested transfers given...

Conventional in-work benefits (IWB) are means-tested, open to all workers with sufficiently low income, and usually paid without a time-limit. This paper evaluates an IWB with an alternative design that was aimed at lone parents in the UK and piloted in one third of the country, and that...