In a general equilibrium model of a small open economy with a nontraded goods sector involuntary low-skilled labour unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the 'European scenario'. By the concept of constrained...

The Ifo Institute has worked out a detailed proposal to reform the system of welfare benefits and made estimates regarding the consequences for employment, distribution of income and fiscal costs. The Ifo proposal aims at making the German labour market functional again without lowering the...

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...