Arbeitspapier

Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis

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 main contribution is that we are able to identify general equilibrium effects of a reform on wages and unemployment. The simulation results show that general equilibrium wage reactions tend to mitigate labour supply effects. Moreover, the simulations indicate that substantial employment effects are to be expected only from major cuts in welfare payments.

Language
Deutsch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 03-70

Classification
Wirtschaft
Time Allocation and Labor Supply
Computable and Other Applied General Equilibrium Models
Trade Unions: Objectives, Structure, and Effects
Subject
social assistance
discrete labour supply model
applied general equilibrium
Sozialhilfe
Sozialreform
Arbeitsangebot
Diskrete Entscheidung
Niedriglohn
Beschäftigungseffekt
Arbeitslosigkeit
Öffentlicher Transfer
Allgemeines Gleichgewicht
CGE-Modelling
Wirtschaftspolitische Wirkungsanalyse
Deutschland

Event
Geistige Schöpfung
(who)
Schnabel, Reinhold
Gürtzgen, Nicole
Boeters, Stefan
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2003

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schnabel, Reinhold
  • Gürtzgen, Nicole
  • Boeters, Stefan
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2003

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