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BP201503

BP201503

Table of

Table of ContentsAbstract ....................................................................................................................................... 11. Introduction ......................................................................................................................... 22. Measuring Financial Incentives to Work ................................................................................ 32.1 Replacement rates: Meaning and Measurement ................................................................................. 32.2 Estimating Wages for the Unemployed ................................................................................................ 52.3 Unemployment and Wage Scarring ...................................................................................................... 62.4 Estimating Unemployment Compensation for Employees ................................................................... 92.5 Data and the Microsimulation Model ................................................................................................. 103. Distribution of Replacement Rates ...................................................................................... 113.1 Sensitivity Tests: Wage Scarring and In-Work Costs ........................................................................... 144. Profiling Replacement Rates ............................................................................................... 165. Which Aspects of Policy Contribute Most to High Replacement Rates? ................................ 196. Behavioural Responses to Replacement Rates ..................................................................... 237. Conclusions ........................................................................................................................ 24Bibliography .............................................................................................................................. 26

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