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
Principal Investigator(s): View help for Principal Investigator(s) Peter Haan, FU Berlin and DIW Berlin; Victoria Prowse, Purdue University
Version: View help for Version V1
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| MatlabCode | 10/01/2023 07:52:PM | ||
| PrimaryDataWork | 10/01/2023 07:45:PM | ||
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application/pdf | 143.3 KB | 10/01/2023 03:45:PM |
Project Description
Summary:
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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:
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Life-cycle labor supply;
Family labor supply;
Unemployment insurance;
Social assistance;
Household savings;
Employment risk;
Added worker effect;
Intra-household insurance
JEL Classification:
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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
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:
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Germany
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