%0 Report
        %A Bonin, Holger
%A Kempe, Wolfram
%A Schneider, Hilmar
        %T Household Labor Supply Effects of Low-Wage Subsidies in Germany
        %D 2002
        %8 2002 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 637
        %U https://www.iza.org/publications/dp637
        %X This research evaluates the impact on German household labor supply of various subsidy
schemes proposed to foster low-wage employment. Using data from the German Socio-
Economic Panel, we estimate a discrete choice model of household labor supply. On the
basis of the estimated labor supply parameters of husbands and wives, we simulate
participation and hours effects of different policies raising low labor earnings at the individual
and household levels. In all cases, the labor supply effect is very moderate. Subsidies to
individuals promote part-time employment, in particular of second earners, while subsidies
based on low household income drive the better qualified partner out of the labor market so
that the total number of labor market participants even declines.
        %K discrete choice
%K labor supply
%K low-wage subsidies
%K Germany