@TechReport{iza:izadps:dp5473,
            	author={Tonin, Mirco and Kolm, Ann-Sofie},
            	title={In-Work Benefits and Unemployment},
            	year={2011},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={5473},
            	url={https://www.iza.org/publications/dp5473},
	abstract={In-work benefits are becoming an increasingly relevant labour market policy, gradually expanding in scope and geographical coverage. This paper investigates the equilibrium impact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. We find under which conditions accounting for equilibrium wage adjustments amplifies the impact of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which wages are fixed. We also account for the financing of these benefits and determine the level of benefits necessary to achieve efficiency in a labour market characterized by search externalities.},
	keywords={search;in-work benefits;labour force participation;wage adjustment},
            }