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  ReplicationArchive 10/01/2023 07:52:PM

Project Citation: 

Haan, Peter, and Prowse, Victoria. Data and Code for: The Heterogeneous Effects of Social Assistance and Unemployment Insurance: Evidence from a Life-Cycle Model of Family Labor Supply and Savings. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-03-01. https://doi.org/10.3886/E192603V1

Project Description

Summary:  View help for Summary We empirically analyze the heterogeneous welfare effects of unemployment insurance and social assistance. We estimate a structural life-cycle model of singles' and married couples' labor supply and savings decisions. The model includes heterogeneity by age, education, wealth, sex and household composition. In aggregate, social assistance dominates unemployment insurance; however, the opposite holds true for married men, whose leisure time declines more than that of their spouses when unemployment insurance is reduced. A revenue-neutral rebalancing of social support away from unemployment insurance and toward social assistance increases aggregate welfare. Income pooling in married households decreases the welfare value of social assistance.

Scope of Project

Subject Terms:  View help for Subject Terms Life-cycle labor supply; Family labor supply; Unemployment insurance; Social assistance; Household savings; Employment risk; Added worker effect; Intra-household insurance
JEL Classification:  View help for JEL Classification
      H21 Taxation and Subsidies: Efficiency; Optimal Taxation
      I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
      J18 Demographic Economics: Public Policy
      J68 Mobility, Unemployment, and Vacancies: Public Policy
Geographic Coverage:  View help for Geographic Coverage Germany
Time Period(s):  View help for Time Period(s) 1991 – 2004


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