This paper proposes a test for the existence and the degree of contagious presenteeism and negative externalities in sickness insurance schemes. First, we theoretically decompose moral hazard into shirking and contagious presenteeism behavior. Then we derive testable conditions for reduced...

We analyze the consequences of bonus taxes, limited deductibility of bonuses from company pro ts and a corporate income tax (CIT) in a principal-agent model and explore how these tax instruments a ffect managerial incentives and how they change the design of incentive contracts used in...

Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to relative...

Die vorliegende Studie möchte einen Beitrag zur Analyse der Wirkung öffentlicher Wirtschaftsförderung leisten. Mit Daten des IAB-Betriebspanels der Jahre 1996 bis 2009 wird die der Einfluss staatlicher Unterstützung auf verschiedene Indikatoren, die einen Einblick in die betriebliche...

This paper studies the effects of investment tax credits on firms' input choices by exploitinga sudden shift in the tax credit rate by firm size for manufacturing firms in Germany in 1999. I find that more generous tax credits lead to a significant increase in both investment and employment,...

There is a successful and growing number of studies published in top-economics journals that exploit the division and re-unification of Germany as a natural experiment for analysing the effects of political regimes on economic behaviour. One strand of the literature shows that socialism shaped...

In this paper a labor supply model with demand side rationing is estimated to analyze the economic policies that directly affect incentives to work as well as labor costs. The framework is applied to evaluate the employment effects of a federal minimum wage in Germany and the impact of employer-...

This paper analyzes the question why desired and actual sharing of market work and family duties among parents with young children in Germany fall apart. Potential explanations include financial incentives favoring the single-earner model, as well as constraints in choosing working hours due to...

With respect to the labor market participation of the elderly in welfare states, the economic literature focuses on the incentives to the worker in the light of generous early retirement opportunities. The sociological literature on the other hand addresses the problem of low productivity of...

We provide levels of, compositions of, and inequalities in household augmented wealth – defined as the sum of net worth and pension wealth – for two countries: the United States and Germany. Pension wealth makes up a considerable portion of household wealth: about 48% in the United States...