TY  - RPRT
        AU  - Bargain, Olivier B.
AU  - Caliendo, Marco
AU  - Haan, Peter
AU  - Orsini, Kristian
        TI  - 'Making Work Pay' in a Rationed Labour Market
        PY  - 2006/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2033
        UR  - https://www.iza.org/index.php/publications/dp2033
        AB  - We assess the labour supply effects of two 'making work pay' reforms in Germany. We provide evidence in favour of policies that distinguish between low effort and low productivity by targeting individuals with low wages rather than individuals with low earnings. In assessing the policies we account for demand-side constraints by using a double-hurdle model. We identify and decompose the potential bias of labour supply elasticities derived in standard unconstrained models. Although this bias is not significant when assessing policies which mainly target voluntarily unemployed workers (typically secondary earners), it is substantial for policies which affect groups with high shares of involuntary unemployment.
        KW  - multinomial logit
KW  - household labour supply
KW  - microsimulation
KW  - involuntary unemployment
KW  - tax-benefit systems
KW  - double-hurdle
        ER  -