Please use this identifier to cite or link to this item: http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18448
Title: Apply with Caution: Introducing UK-Style In-work Support in Germany
Keywords: J22
H31
C52
C25
ddc:330
tax-benefit system
in-work benefits
microsimulation
household labour supply
Einkommensteuer
Steuerbegünstigung
Arbeitsangebot
Großbritannien
Deutschland
Issue Date: 16-Oct-2013
Publisher: Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
Description: Estimates of labour supply effects of recent UK reforms in the area of direct taxes and benefits show that policy can have significant influence on the level of employment. We confirm this in a simulation of in-work support system introduced into the German tax and benefit system. Our simulation results suggest that introducing in-work Tax Credits in Germany would increase employment of single individuals by over 100,000 but it would result in a reduction of labour supply among individuals living in couples by about 70,000. We find that Tax Credits would result in significant reductions of labour supply both among women and men in two earner couples. The result found for men is especially important as it is markedly different from all results found for the UK, where the overall response among men has always been found positive. Our estimation results call for a high degree of caution as far as ?importing? UK-style Tax Credits to Germany is concerned. In-work support based on family income would reinforce the existing work disincentives for secondary earners through joint income taxations, reducing the employment levels of both men and women living in couples.
URI: http://koha.mediu.edu.my:8181/xmlui/handle/10419/18448
Other Identifiers: http://hdl.handle.net/10419/18448
ppn:508570751
Appears in Collections:EconStor

Files in This Item:
There are no files associated with this item.


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.