Labour Supply Curves for EU Member and Candidate States: An Applied General Equilibrium Analysis

2012 ◽  
Author(s):  
Lindsay Shutes
2006 ◽  
Vol 7 (4) ◽  
pp. 363-388 ◽  
Author(s):  
Stefan Boeters ◽  
Nicole Gürtzgen ◽  
Reinhold Schnabel

Abstract In this paper, the effects of social assistance reform proposals are discussed for the case of Germany using a computable general equilibrium model that incorporates a discrete choice model of labour supply. This allows us to identify general equilibrium effects of the reforms on wages and unemployment. The simulation results show that general equilibrium wage reactions mitigate labour supply effects and that unemployment in fact decreases. Wage reactions are thus sufficiently strong to prevent additional labour supply from translating into higher unemployment. The simulations indicate that major cuts in welfare payments are necessary to produce substantial employment effects.


Economica ◽  
1986 ◽  
Vol 53 (209) ◽  
pp. 120 ◽  
Author(s):  
W. E. Diewert ◽  
Herbert E. Scarf ◽  
John B. Shoven

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