The Impact of In-Work Benefits on Poverty and Household Labour Supply - A simulation study for Switzerland

Gerfin, Michael; Leu, Robert E. (April 2003). The Impact of In-Work Benefits on Poverty and Household Labour Supply - A simulation study for Switzerland (Diskussionsschriften 03-04). Bern: Universität Bern Volkswirtschaftliches Institut

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Income support for working low income families (the “working poor”) is on top of the political agenda in Switzerland. The current social assistance system is considered inadequate to support working poor households. Labour unions propose the introduction of a general minimum wage, whereas the Swiss government promotes in-work benefits. Based on a structural labour supply model this paper provides microsimulation results of the effects of introducing different schemes of in-work benefits. It turns out that adding a minimum hours requirement to the current social assistance system is the most cost-efficient reform. Minimum wages are ineffective in fighting poverty.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Gerfin, Michael and Leu, Robert

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

Diskussionsschriften

Publisher:

Universität Bern Volkswirtschaftliches Institut

Language:

English

Submitter:

Aline Lehnherr

Date Deposited:

11 Jun 2020 17:01

Last Modified:

06 Aug 2020 14:18

JEL Classification:

I38, J22, C25

BORIS DOI:

10.7892/boris.144071

URI:

https://boris.unibe.ch/id/eprint/144071

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