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Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation
We present a consistent microsimulation-AGE model combining the labour market AGE model PACE-L, data from the German Socio-Economic Panel and a discrete choice labour supply estimation. The model is used to analyse a reform that cuts the social assistance minimum income and lowers the transfer withd...
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| Published in: | Economic modelling 2008-05, Vol.25 (3), p.422-439 |
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| Main Authors: | , , , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c543t-93bce5a638fe0c07d843e783196c36d83ec41c8f0a7f425167741104ec7d95d83 |
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| cites | cdi_FETCH-LOGICAL-c543t-93bce5a638fe0c07d843e783196c36d83ec41c8f0a7f425167741104ec7d95d83 |
| container_end_page | 439 |
| container_issue | 3 |
| container_start_page | 422 |
| container_title | Economic modelling |
| container_volume | 25 |
| creator | Arntz, Melanie Boeters, Stefan Gürtzgen, Nicole Schubert, Stefanie |
| description | We present a consistent microsimulation-AGE model combining the labour market AGE model PACE-L, data from the German Socio-Economic Panel and a discrete choice labour supply estimation. The model is used to analyse a reform that cuts the social assistance minimum income and lowers the transfer withdrawal rate in order to encourage labour force participation at the lower end of the wage distribution. We compare a disaggregated and an aggregated version of the model as well as a partial and a general equilibrium variant.
It turns out that both disaggregation and general equilibrium feedback tend to mitigate the labour supply response to the reform proposal. While some labour supply indicators react quite sensitively to the level of aggregation, most macroeconomic variables are considerably more robust. |
| doi_str_mv | 10.1016/j.econmod.2007.07.001 |
| format | article |
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It turns out that both disaggregation and general equilibrium feedback tend to mitigate the labour supply response to the reform proposal. 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| fulltext | fulltext |
| identifier | ISSN: 0264-9993 |
| ispartof | Economic modelling, 2008-05, Vol.25 (3), p.422-439 |
| issn | 0264-9993 1873-6122 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_36906484 |
| source | International Bibliography of the Social Sciences (IBSS); ScienceDirect Freedom Collection |
| subjects | Applied general equilibrium Applied general equilibrium models Discrete working time choice Econometric models Economic models Germany Income distribution Labor market Labor supply Labour market Labour market reform Logit model Market equilibrium Microsimulation Panel data Reforms Studies Wage bargaining Wage negotiations Welfare reform |
| title | Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation |
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