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Life-Cycle Incidence of Family Policy Measures in Germany: Evidence from a Dynamic Microsimulation Model

Holger Bonin, Karsten Reuß () and Holger Stichnoth ()

No 770, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: This paper quantifies the life-cycle incidence of key family policy measures in Germany. The analysis is based on a novel dynamic microsimulation model that combines simulated family life-cycles for a base population from the 2009 wave of the German Socio-Economic Panel (SOEP) with a comprehensive tax-benefit model. The results indicate that households in Germany benefit considerably from family- and marriage-related transfers, yet also reveal substantial variation behindthe population average. Moreover, it is shown that some measures, such as income tax splitting, may make individuals in fact worse off, in financial terms, over the long course, as a result of negative labour supply incentives which are reinforced through detrimental effects on human capital accumulation.

Keywords: Dynamic microsimulation; family policy; Germany (search for similar items in EconPapers)
JEL-codes: C53 C54 J12 J13 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-pbe
Date: 2015
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Working Paper: Life-cycle incidence of family policy measures in Germany: Evidence from a dynamic microsimulation model (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp770

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