The Targeted Negative Income Tax (TNIT) in Germany: Evidence from a Quasi Experiment

Alexander Spermann () and Harald Strotmann ()

No 2067, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We report empirical evidence from the first field experiments to be conducted in Germany with program and control groups between 1999 and 2002. The evaluated program called "Targeted Negative Income Tax (TNIT)" is a time-restricted employee subsidy for meanstested welfare recipients. We focus on a unique data set on welfare recipients in Mannheim and estimate the treatment effect of TNIT on participation probability. The average treatment effect is significant and lies between 6.6 and 6.8 percentage points. Since January 1st, 2005, TNIT can be offered to all means-tested long-term unemployed people in Germany by public case managers.

Keywords: field experiments; labor market reform; negative income tax; employee subsidy; long-term unemployment (search for similar items in EconPapers)
JEL-codes: C93 I38 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe
Date: Written
View list of references View citations in EconPapers

Downloads: (external link)
ftp://repec.iza.org/RePEc/Discussionpaper/dp2067.pdf (application/pdf)

Related works:
Working Paper: The Targeted Negative Income Tax (TNIT) in Germany: Evidence from a Quasi Experiment (2005)
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: http://EconPapers.repec.org/RePEc:iza:izadps:dp2067

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA)
Address: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Contact information at EDIRC.
Series data maintained by Mark Fallak ().