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CINCH - Health Economics Research Center

New CINCH working paper

14.11.2017

A new working paper has been added to the CINCH working paper series: “The Effects of Collecting Income Taxes on Social Security Benefits” by John Bailey Jones and Yue Li.

Since 1983, Social Security benefits have been subject to income taxation, a provision that can significantly increase the marginal income tax rate for older individuals. To assess the impact of this tax, we construct and calibrate a detailed life-cycle model of labor supply, saving, and Social Security claiming. We find that in a long-run stationary environment, replacing the taxation of Social Security benefits with a revenue-equivalent change in the payroll tax would increase labor supply, consumption, and welfare. From an ex-ante perspective an equally desirable reform would be to make the portion of benefits subject to income taxes completely independent of other income.

See all working papers.


Monday Health Economics Seminar

13.11.2017

On Monday November 20, 2017, 14:00 - 15:30 Simon Reif (FAU) will present:

Is it good to be too light? Birth weight thresholds in hospital reimbursement systems

Birth weight manipulation is common in per-case hospital reimbursement systems, in which hospitals receive more money for otherwise equal newborns with birth weight just below compared to just above specific birth weight thresholds. As hospitals receive more money for cases with weight below the thresholds, having a (reported) weight below a threshold could benefit the newborn. Also, these reimbursement thresholds overlap with diagnostic thresholds that have been shown to affect the quantity and quality of care that newborns receive. Based on the universe of hospital births in Germany from the years 2005–2011, we investigate whether weight below reimbursement relevant thresholds triggers different quantity and quality of care. We find that this is not the case, suggesting that hospitals’ financial incentives with respect to birth weight do not directly impact the care that newborns receive.

Room: WST-C.02.11, Weststadttürme Berliner Platz 6-8, Essen

To find more on upcoming seminars, click here.


Monday Health Economics Seminar

07.11.2017

On Monday November 13, 2017, 14:00 - 15:30 Bora Kim (CINCH) will present:

Minimum wage and disability-related differentials in earnings in Germany

We investigate whether the German national minimum wage implemented on 1 January 2015 contributed to reducing disability-related wage gap (DG). Using the distribution regression, we compare DG at different points of the wage distribution between 2014 and 2015. Our result suggests that DG is widened in 2015, especially in middle and upper points of the distribution due to a larger wage growth among workers without disabilities. By exploiting counterfactual distributions, we find that the wider gap is mostly attributed to discriminatory factors that are not explained by heterogeneity in workers' job or personal characteristics. After restricting the disabled sample to those who possess severe disabilities, on the other hand, we observe up to 10 ppt reduction in the unexplained DG among the workers earning around the national MW, 8.5 euro per hour. A similar change is reported with respect to earnings of female workers with disabilities. These findings are presumably due to larger bites of the MW among these sub-groups of the disabled.

Room: WST-C.02.11, Weststadttürme Berliner Platz 6-8, Essen

To find more on upcoming seminars, click here.