TY - RPRT A1 - Haan, Peter A1 - Traxler, Christian T1 - An Evaluation of Montenegro's 2022 Minimum Wage and Income Tax Reform N2 - Between 2018 and 2022, Montenegro introduced a series of significant policy reforms. The reforms affected economic, educational, and social policies, ranging from the introduction of a universal child allowance to major changes in its labour market regulations and tax rules. From an economic policy perspective, the most significant reform package was implemented in January 2022. It was composed of a huge increase in Montenegro’s statutory minimum wage, alongside a new income tax regime and the abolishment of mandatory health insurance contributions. According to the Government, the reform package aimed at increasing the living standards of citizens and promoting a more sustainable and inclusive growth model. This report evaluates the conjoint impact of this reform package. KW - Economics Y1 - 2023 UR - https://www.esap.online/docs/213/ilo-esap-2-an-evaluation-of-montenegros-2022-minimum-wage-and-income-tax-reform SN - 9789220402009 PB - International Labour Organization CY - Geneva ER - TY - RPRT A1 - Becker, Sebastian A1 - Buslei, Hermann A1 - Geyer, Johannes A1 - Haan, Peter T1 - The effect of pension wealth on employment N2 - This study provides novel evidence about the pension wealth elasticity of employment. For the identification we exploit reform-induced variation of pension wealth that is related to the number of children but which does not affect the implicit tax rate of employment. We use a difference-in-differences estimator based on administrative data from the German pension insurance and find that, on average, the negative employment effect of pension wealth is significant and economically important. Heterogeneity analyses document a strong age pattern showing that the employment effects are driven by behavioral responses of women close to retirement. The age pattern is partly explained by the positive effect of pension wealth on disability pensions after the age of 60. T3 - Berlin School of Economics Discussion Papers - 9 KW - pension reform, pension wealth elasticity, female labour supply, retirement, differences in differences Y1 - 2023 UR - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:b1570-opus4-47027 UR - https://berlinschoolofeconomics.de/insights/bse-discussion-papers ET - No. 9 ER - TY - RPRT A1 - Haan, Peter A1 - Sun, Chen A1 - Sunde, Uwe A1 - Weizsäcker, Georg T1 - Non-Additivity of Subjective Expectations over Different Time Intervals T2 - Berlin School of Economics Discussion Papers N2 - We examine the additivity of stock-market expectations over different time intervals. When asked about a ten-year interval, survey respondents expect a stock-price change that is not equal to, but closer to zero than, the sum of their expectations over two shorter time intervals that cover the same ten years. Such sub-additivity is irrational in that it cannot stem from aggregating short-term expectations. Model estimates show that the pattern is consistent with a time perception where shorter time intervals have a proportionally larger weight. We also find that the respondents’ degree of additivity is correlated with making larger financial investments. T3 - Berlin School of Economics Discussion Papers - 4 KW - Expectation Formation, Time perception, Sub-additivity, Super-additivity Y1 - 2022 UR - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:b1570-opus4-46602 UR - https://berlinschoolofeconomics.de/insights/bse-discussion-papers ET - No. 4 ER - TY - RPRT A1 - Haan, Peter A1 - Prowse, Victoria T1 - The Heterogeneous Effects of Social Assistance and Unemployment Insurance: Evidence from a Life-Cycle Model of Family Labor Supply and Savings T2 - Berlin School of Economics Discussion Papers N2 - We empirically analyze the heterogeneous welfare effects of unemployment insurance and social assistance. We estimate a structural life-cycle model of singles’ and married couples’ labor supply and savings decisions. The model includes heterogeneity by age, education, wealth, sex and household composition. In aggregate, social assistance dominates unemployment insurance; however, the opposite holds true for married men, whose leisure time declines more than that of their spouses when unemployment insurance is reduced. A revenue-neutral rebalancing of social support away from unemployment insurance and toward social assistance increases aggregate welfare. Income pooling in married households decreases the welfare value of social assistance. T3 - Berlin School of Economics Discussion Papers - 20 Y1 - 2023 UR - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:b1570-opus4-50128 UR - https://berlinschoolofeconomics.de/insights/bse-discussion-papers ET - No. 20 ER - TY - RPRT A1 - Haan, Peter A1 - Santonja, Adrián A1 - Zaklan, Aleksandar T1 - Effectiveness and Heterogeneous Effects of Purchase Grants for Electric Vehicles N2 - We evaluate German purchase subsidies for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) using data on new vehicle registrations in Germany during 2015-2022. We account for confounding time trends and interacting EU-level CO2 standards using neighboring countries as a control group. The program was cost-ineffective, as only 40% of BEV and 25% of PHEV registrations were subsidy-induced, and had strong distributional effects, with greater uptake in wealthier and greener counties. The implied abatement cost of 870 euro per ton of CO2 for BEVs and 2,470 euro for PHEVs suggests that subsidies to PHEVs were especially cost-ineffective. T3 - Berlin School of Economics Discussion Papers - 11 KW - Decarbonizing road transport, electric mobility, purchase subsidies, policy effectiveness, distributional effects of climate policy Y1 - 2023 UR - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:b1570-opus4-47610 UR - https://berlinschoolofeconomics.de/insights/bse-discussion-papers ET - No. 11 ER - TY - RPRT A1 - Haan, Peter A1 - Kemptner, Daniel A1 - Prowse, Victoria A1 - Schaller, Maximilian T1 - Insurance, Redistribution, and the Inequality of Lifetime Income T2 - Berlin School of Economics Discussion Papers N2 - Individuals vary considerably in how much they earn during their lifetimes. This study examines the role of the tax-and-transfer system in mitigating such inequalities, which could otherwise lead to disparities in living standards. Utilizing a life-cycle model, we determine that taxes and transfers offset 45% of lifetime earnings inequality attributed to differences in productive abilities and education. Additionally, the system insures against 48% of lifetime earnings risk. Implementing a lifetime tax reform linking annual taxes to previous employment could improve the system’s insurance capabilities, albeit at the cost of a lower employment rate. T3 - Berlin School of Economics Discussion Papers - 28 KW - Economics Y1 - 2023 UR - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:b1570-opus4-51126 UR - https://berlinschoolofeconomics.de/insights/bse-discussion-papers ET - No. 28 ER -