Benefit take-up and labor supply incentives of interdependent means-tested benefit programs for low-income households

Abstract

"Using a microsimulation model based on representative panel data, we analyze the outcomes of three major means-tested interdependent benefit programs that are available for low-income households in Germany with respect to benefit take-up and labor supply incentives. The results show a distinct overlap between the programs and high rates of non-take-up, indicating that the effectiveness of the programs in reaching their target groups could be improved. Furthermore, we find that workers from low-income households are confronted with a complex benefit structure and high marginal tax rates, which negatively affects the individual labor supply." (Author's abstract, IAB-Doku) ((en))

Cite article

Bruckmeier, K. & Wiemers, J. (2018): Benefit take-up and labor supply incentives of interdependent means-tested benefit programs for low-income households. In: Comparative Economic Studies, Vol. 60, No. 4, p. 583-604. DOI:10.1057/s41294-017-0041-5