This paper assesses the effect of key demographic changes (population ageing and upskilling) that are expected by 2030 on the income distribution in the EU-27 and examines the potential of tax-benefit systems to counterbalance negative developments. Theory predicts that population ageing should increase income inequality, while the effect of up-skilling...
There is still considerable dispute about the magnitude of labor supply elasticities. While differences in estimates especially between micro and macro models are recently attributed to frictions and adjustment costs, we show that the variation in elasticities derived from structural labor supply models can also be explained by modeling assumptions....
Using Dutch administrative data, we assess the work and earnings capacity of disability insurance (DI) recipients by estimating employment and earnings responses to benefit cuts. Reassessment of DI entitlement under more stringent criteria removed 14.4 percent of recipients from the program and reduced benefits by 20 percent, on average. In...
Despite rapidly rising female educational attainment and the closing if not reversal of the gender gap in education, female labor force participation rates in the MENA region remain low and stagnant, a phenomenon that has come to be known as the "MENA paradox." Even if increases in participation are observed,...
The impact of the duration of parental leave on women's employment in Korea is examined by focusing on the heterogeneous effects. The results of the extension of the maximum job-protected leave from 12 months to 15 months are as follows. First, the policy change led to more female employees taking...
We compute participation tax rates across the EU and find that work disincentives inherent in tax-benefit systems largely depend on household composition and the individual's earner role within the household. We then estimate participation elasticities using an IV Group estimator that enables us to investigate the responsiveness of individuals to...
What are the effects of universal and permanent cash transfers on the labor market? Since 1982, all Alaskan residents have been entitled to a yearly cash dividend from the Alaska Permanent Fund. Using data from the Current Population Survey and a synthetic control method, we show that the dividend had...
The paper evaluates the distributional effects on earnings and income of requiring young welfare recipients to fulfill conditions related to work and activation. It exploits within-social insurance office variation in policy arising from a geographically staggered reform in Norway. The reform reduced welfare uptake and for women had large, positive...
Female labor force participation rates across the Middle East and North Africa (MENA) region have remained low for over four decades, despite the fact that in the same period, women's education rapidly increased and fertility rates substantially decreased. This surprising phenomenon has remained a puzzle. This study tries to provide...
This paper proposes an extension of the collective model for labor supply developed by Chiappori, Fortin and Lacroix (2002) to an intertemporal setting. We first develop a theoretical model to analyze the intra-household distribution of wealth in a multi-period framework, with a focus on labor supply and marriage markets. The...
In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing lifetime earnings between individuals with different skill endowments and by providing individuals with insurance against lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system...
In this paper, we analyze the time allocation decisions of teleworkers, and compare them with their commuter counterparts. Using data from the American Time Use Survey for the years 2003 to 2015, we analyze the time spent working, the timing of work, and the instant enjoyment experienced while working, of...
We study the effect of childbirth and its timing on female labour market outcomes in Italy. The impact on yearly labour earnings and participation is traced up to 21 years since school completion by estimating a factor analytic model with dynamic selection into treatments. We find that childbearing, especially the...
Many governments invest substantial public funds to foster early childhood education. And yet, there are still many open questions who responds to and who benefits from public investments into early childcare. We use the introduction of free public daycare in German states to analyze its effects on children and their...
A common finding in the entrepreneurship literature is that business creation increases in recessions. This counter-cyclical pattern is examined by separating business creation into two components: "opportunity" and "necessity" entrepreneurship. Although there is general agreement in the previous literature on the conceptual distinction between these two factors driving entrepreneurship, there...
This study quantifies the short-term distributional effects of the new statutory minimum wage in Germany. Using detailed survey data (German Socio-Economic Panel), we assess changes in the distributions of hourly wages, contractual and actual working hours, and monthly earnings. Our descriptive results indicate growth at the bottom of the hourly...
We consider the life cycle choices of a household that in each period decides how much to consume and how to allocate spouses' time to work, leisure, and childcare. In an environment with uncertainty, the allocation of goods and time over the life cycle also serves the purpose of smoothing...
Working-age grandparents supply large amounts of child care, an observation that raises the question of how having grandchildren affects grandparents' own labor supply. Exploiting the unique genealogical design of the PSID and the random variation in the timing when the parents of first-born boys and girls become grandparents, we estimate...
This analysis is motivated by recognition that anti-poverty interventions often affect both the level and composition of assets held by beneficiaries. To assess the conventional view that assets uniformly improve childhood development through wealth effects, we use three waves of panel data from Tanzania and test whether different types of...
This paper investigates the wage returns to schooling and actual early work experiences, and how these returns have changed over the past twenty years. Using the NLSY surveys, we develop and estimate a dynamic model of the joint schooling and work decisions that young men make in early adulthood, and...