Analyzing female labor supply: Evidence from a Dutch tax reform

This paper uses the exogenous variation caused by the Dutch tax reform of 2001 to investigate how married women react to financial incentives. Among OECD countries, the Netherlands has average female labor force participation, but by far the highest rate of part-time work. Our main conclusion is that the positive significant effect of the 2001 tax reform on labor force participation dominates the negative insignificant effect on working hours. Our preferred explanation is that women respond more to changes in tax allowances than to changes in marginal tax rates.

Testing the normality assumption in the sample selection model with an application to travel demand

In this paper we introduce a test for the normality assumption in the sample selection model.The test is based on a generalization of a semi-nonparametric maximum likelihood method.In this estimation method,the distribution of the error erms is approximated by a Hermite series,with normality as a special case.Because all parameters of the model are estimated both under normality and in the more general specification,we can est for normality using the likeli- hood ratio approach.This est has reasonable power as is shown by a simulation study.Finally,we apply the generalized semi-nonparametric maximum likeli- hood estimation method and the normality est o a model of car ownership and car use.The assumption of normal distributed error erms is rejected and we provide estimates of the sample selection model that are consisten .

Carrot and stick: How reemployment bonuses and benefit sanctions affect job finding rates

To increase their transition from welfare to work, benefit recipients in the municipality of Rotterdam were exposed to various financial incentives, including both carrots to sticks. Once their benefit spell exceeded one year, welfare recipients were entitled to a reemployment bonus if they found a job that lasted at least six months. However, they could also be punished for noncompliance with eligibility requirements and face a sanction, i.e. a temporary reducing of their benefits. In this paper we investigate how benefit sanctions and reemployment bonuses affect job finding rates of welfare recipients. We find that benefit sanctions were effective in bringing unemployed from welfare to work more quickly while reemployment bonuses were not.

Punitive sanctions and the transition from welfare to work

social welfare;employment;labour policy;job search

Testing the normality assumption in the sample selection model with an application to travel demand

In this paper we introduce a test for the normality assumption in the sample selection model.The test is based on a generalization of a semi-nonparametric maximum likelihood method.In this estimation method,the distribution of the error erms is approximated by a Hermite series,with normality as a special case.Because all parameters of the model are estimated both under normality and in the more general specification,we can est for normality using the likeli- hood ratio approach.This est has reasonable power as is shown by a simulation study.Finally,we apply the generalized semi-nonparametric maximum likeli- hood estimation method and the normality est o a model of car ownership and car use.The assumption of normal distributed error erms is rejected and we provide estimates of the sample selection model that are consisten