Ph.D. Programme Quantitative Economics


Weekly seminar of the Department of Economics on mondays, 4:15 - 6:00 p.m.

Organizer: Dr. Rüdiger Voss

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Summer term 2019


Apr 08, 2019 from 04:15 PM to 06:00 PM – WSP1, R.401


Apr 15, 2019 from 04:15 PM to 06:00 PM – IfW, Lecture Hall

27.05.2019: Erwin Ooghe (KU Leuven)

May 27, 2019 from 04:15 PM to 06:00 PM

WSP1, R.401

Conditional earnings susidies for low earners

Having low earnings is often not sufficient to be eligible for in-work tax credits. In the United Kingdim, New Zealand, and Ireland, for example, eligibility also requires that the number of hours worked is sufficiently high. Similarly, in France and Belgium the hourly wage rate must be sufficiently low. This paper provides a justification for such additional conditions. I analyze Pareto efficient redistribution from high to low ability individuals in a model where labor has several intensive margins. Besides labor hours, also labor effort --- a vector of unpleasant, but productive features of labour --- is an object of choice. Effort and ability determine the hourly wage rate. I find that conditional earnings subsidies for low earners are optimal: the earnings of low earners should be subsidized at the margin, but only if they earn more by working more hours at a sufficiently low wage rate.

Host: Prof. Sebastian Köhne

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Jul 08, 2019 from 04:15 PM to 06:00 PM – WSP1, R.401

Additional Seminar on 12.06.2019: Prof. Moritz Kuhn (University of Bonn)