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Employment and financing effects of the guaranteed minimum income proposed by Dieter Althaus

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  • Clemens Fuest
  • Andreas Peichl
  • Thilo Schaefer

Abstract

Clemens Fuest, Andreas Peichl and Thilo Schäfer, Institute for Public Finance at the University of Cologne, analyse the employment and financing effects of the guaranteed minimum income concept of Dieter Althaus, Minister President of Thuringia. In their opinion the proposed model will not relieve the labour market, since as a result of the guaranteed minimum income, which all (adult) citizens receive independently of any other income, the option of not working or working less becomes more attractive than under the current system of taxation. In addition, financing the concept would be very expensive, amounting to more than €180 billion. Combi-wage models, in the opinion of the authors, present a reasonable alternative to a guaranteed minimum income for all.

Suggested Citation

  • Clemens Fuest & Andreas Peichl & Thilo Schaefer, 2007. "Employment and financing effects of the guaranteed minimum income proposed by Dieter Althaus," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(10), pages 36-40, May.
    • Handle: RePEc:ces:ifosdt:v:60:y:2007:i:10:p:36-40
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    References listed on IDEAS

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    1. Schaefer, Thilo & Peichl, Andreas, 2006. "Documentation FiFoSiM: integrated tax benefit microsimulation and CGE model," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 06-10, University of Cologne, FiFo Institute for Public Economics.
    2. Fuest Clemens & Peichl Andreas, 2008. "Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis," Review of Economics, De Gruyter, vol. 59(2), pages 94-113, August.
    3. Peichl, Andreas, 2005. "Die Evaluation von Steuerreformen durch Simulationsmodelle," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 05-1, University of Cologne, FiFo Institute for Public Economics.
    4. Gerhard Wagenhals, 2004. "Tax-benefit microsimulation models for Germany: A Survey," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 235/2004, Department of Economics, University of Hohenheim, Germany.
    5. Hohenleitner, Ingrid & Straubhaar, Thomas, 2008. "Bedingungsloses Grundeinkommen und Solidarisches Bürgergeld - mehr als sozialutopische Konzepte," Edition HWWI: Chapters, in: Straubhaar, Thomas (ed.), Bedingungsloses Grundeinkommen und Solidarisches Bürgergeld - mehr als sozialutopische Konzepte, volume 1, pages 9-127, Hamburg Institute of International Economics (HWWI).
    6. Gary Burtless & David Greenberg, 1983. "Measuring the Impact of Nit Experiments on Work Effort," ILR Review, Cornell University, ILR School, vol. 36(4), pages 592-605, July.
    7. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
    8. Fuest, Clemens & Peichl, Andreas & Schaefer, Thilo, 2007. "Beschäftigungs- und Finanzierungswirkungen von Kombilohnmodellen," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 87(4), pages 226-231.
    9. Peichl, Andreas & Fuest, Clemens & Schaefer, Thilo, 2005. "Dokumentation FiFoSiM: Integriertes Steuer-Transfer-Mikrosimulations- und CGE-Modell," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 05-3, University of Cologne, FiFo Institute for Public Economics.
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    Cited by:

    1. Fuest Clemens & Peichl Andreas, 2008. "Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis," Review of Economics, De Gruyter, vol. 59(2), pages 94-113, August.
    2. Jung, Anna & Thöne, Michael & Elschner, Christina & Ernst, Christof & Overesch, Michael & Bergs, Christian & Schaefer, Thilo, 2009. "Evaluierung von Steuervergünstigungen. Band 3: Evaluierungsberichte (zweiter Teilband). Endfassung (Herbst 2009). Forschungsauftrag Projektnummer 15/07 des Bundesministeriums der Finanzen," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110522.
    3. Clemens Fuest & Joachim Mitschke & Andreas Peichl & Thilo Schaefer, 2007. "The Cologne Combi-Wage for the low-wage sector," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(11), pages 25-29, June.
    4. Spermann Alexander, 2017. "Basic Income in Germany: Proposals for Randomised Controlled Trials using Nudges," Basic Income Studies, De Gruyter, vol. 12(2), pages 1-9, December.
    5. Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (ed.), 2007. "Das Erreichte nicht verspielen. Jahresgutachten 2007/08 [The gains must not be squandered. Annual Report 2007/08]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 200708.

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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