Analysing welfare reform in a microsimulation-AGE model: the value of disaggregation

Melanie Arntz, Stefan Boeters (), Nicole Gürtzgen and Stefanie Schubert
Authors registered in the RePEc Author Service: Nicole Guertzgen ()

No 06-076, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We present a combined, consistent microsimulation-AGE model that uses the labour market model PACE-L, data from the German Socio-Economic Panel and a discrete choice labour supply estimation. The model is used to analyse a reform that cuts the social assistance minimum income and lowers the transfer withdrawal rate in order to encourage labour force participation at the lower end of the wage distribution. We compare a disaggregated and an aggregated version of the model as well as a partial and a general equilibrium variant. It turns out that both disaggregation and general equilibrium feedback tend to mitigate the labour supply response to the reform proposal. While some labour supply indicators react quite sensitively to the level of aggregation, most macroeconomic variables are considerably more robust.

Keywords: applied general equilibrium; discrete working time choice; labour market; wage bargaining; labour market reform; logit model; microsimulation (search for similar items in EconPapers)
JEL-codes: D58 J22 J51 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-cmp and nep-dcm
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/24530/1/dp06076.pdf (application/pdf)

Related works:
Journal Article: Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5469

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().