Under- And Overemployment in Germany: The Role of the Tax and Transfer System and Reform Options
Project period: October 2018 - October 2021
Research Areas:
Tasks
Within the project, the role of the tax and transfer system for discrete decisions (e.g., taking up employment in principle or changing from part-time to full-time employment) will be investigated. For this purpose, participation tax rates will be calculated, employment and work (time) volume developments will be documented, and reform options for improving incentive structures will be simulated, taking behavioral adjustments into account. The project consists of several modules.
Methods
Using the ifo microsimulation model, the project examines how changes in the tax and transfer system affect public budgets (i.e. tax revenues, social security revenues, payment of government transfers), individual incentives to work and employment development, as well as income distribution and numerous different household types.
Data and other sources
Socio-Economic Panel (SOEP) and Panel Labor Market and Social Security (PASS).
Publications (in German)
Raus aus der Zweitverdienerinnenfalle
Bertelsmann Stiftung, Berlin, 2021
Between Wish and Reality. Under- and Overemployment in the German Labor Market
ifo Institut, München, 2021
ifo Forschungsberichte / 119
Who Has an Incentive to Work? Participation Tax Rates of the German Tax-Transfer System
ifo Institut, München, 2020
ifo Forschungsberichte / 118