In this paper we evaluate the eects of economic incentives on the labour market participation for selected groups with weak labour market attachment. We argue that the people most likely to be affected by economic incentives are recipients of socialassistance and home-working housewives. Partner income only seems to be exogenous to the participation decision for home-working housewives. We also estimate participationequations with own potential income gab from working, which in the case of recipients of social assistence are found to have signifcant positive effect. The elasticities fromchanging own disposable income gab on the participation probability is estimated to be in the range 0.2-0.4 per cent. Transforming the elesticities according to defnition in theCGE-model DREAM these amount to 0.07-0.12.
|Status||Udgivet - 2006|