Resource title

Evaluating the German ?Mini-Job? Reform Using a True Natural Experiment

Resource image

image for OpenScout resource :: Evaluating the German ?Mini-Job? Reform Using a True Natural Experiment

Resource description

Increasing work incentives for people with low incomes is a common topic in the policy debate across European countries. The ?Mini-Job? reform in Germany - introduced on April 1, 2003 - can be seen in line with these policies, exempting labour income below a certain threshold from taxes and employees? social security contributions. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the German Socio-Economic Panel, that allows us to distinguish groups that are (or are not) affected by the reform. To account for seasonal effects we additionally use a difference-in-differences strategy. The results show that the short-run effects of the reform are limited. We find no significant short-run effects for marginal employment. However, there is evidence that single men who are already employed react immediately and increase secondary job holding.

Resource author

Marco Caliendo, Katharina Wrohlich

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18462

Resource license

Adapt according to the presented license agreement and reference the original author.