application/pdf 1499787 bytes http://creativecommons.org/licenses/by-nc-nd/4.0/legalcode https://phaidrabg.bg.ac.rs/o:29165 doi:10.2478/ngoe-2019-0010 ISSN: 0547-3101 Keywords: in-work benefits, labour supply, inequality, discrete choice model, microsimulation 2019 Abstract Low labour market participation, together with the high effective tax wedge at low wage levels, create a fertile ground for the introduction of the in-work benefits (IWB) in Serbia. Our paper provides an ex-ante evaluation of the two IWB schemes, directed at stimulating the labour supply and more equal income distribution. The methodological approach combines the tax-and-benefit microsimulation model with the discrete labour supply model. Our results show that both individual and family-based IWB schemes would considerably boost labour market participation, although family-based benefits would have disincentivizing effects for the secondary earners in couples. Most of the behavioural changes take place among the poorest individuals, with significant redistributive effects. Journal of Contemporary Issues in Economics and Business Naše gospodarstvo/Our Economy 65(3) info:eu-repo/semantics/article Labour Supply and Inequality Effects of In-Work Benefits : Evidence from Serbia Ranđelović, Saša Žarković Rakić, Jelena Vladisavljević, Marko Vujić, Sunčica eng