IDEAS home Printed from https://ideas.repec.org/a/zbw/wirtdi/42699.html
   My bibliography  Save this article

Workfare: Eine wirksame Alternative zum Kombilohn

Author

Listed:
  • Bonin, Holger
  • Schneider, Hilmar

Abstract

In the debate on in-work benefits in Germany it is often overlooked that such subsidies may only be effective if basic minimum income is remarkably decreased for those who are employable. However, proposals following this principle will hardly achieve political consensus as can be derived from reactions to the model of ifo or the board of economic advisors. IZA is therefore proposing workfare as an effective alternative, which may accomplish a strong incentive for the acceptance of low paid jobs without having to cut the current welfare level. Simulations based on a micro-econometric labor supply model show that this could add to the workforce an additional number of 800,000 workers. Roughly the same effect could be achieved by the ifo model, however, at the expense of massive cuts of disposable income for welfare recipients. Hence, workfare turns out as an efficient alternative. Moreover, there is no useful combination between in-work benefits based on the current welfare level and workfare.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bonin, Holger & Schneider, Hilmar, 2006. "Workfare: Eine wirksame Alternative zum Kombilohn," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 86(10), pages 645-650.
    • Handle: RePEc:zbw:wirtdi:42699
    DOI: 10.1007/s10273-006-0578-9
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/42699/1/519334841.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s10273-006-0578-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Nina Hetzer & Andreas Peichl, 2010. "Tax reform despite empty public coffers?!," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(01), pages 28-35, January.
    3. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 243-272.
    4. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
    5. Peichl, Andreas & Schneider, Hilmar & Siegloch, Sebastian, 2010. "Documentation IZA?MOD: The IZA Policy SImulation MODel," IZA Discussion Papers 4865, Institute of Labor Economics (IZA).
    6. Berthold, Norbert & Coban, Mustafa, 2013. "Kombilohn oder Workfare? Wege aus der strukturellen Arbeitslosigkeit auf dem Prüfstand [Wage Subsidy or Workfare? Comparison of Two Designs to Reduce Structural Unemployment]," Discussion Paper Series 122, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    7. Schneider, Hilmar & Uhlendorff, Arne & Zimmermann, Klaus F., 2010. "Mit Workfare aus der Sozialhilfe? Lehren aus einem Modellprojekt," IZA Standpunkte 33, Institute of Labor Economics (IZA).
    8. Andreas Peichl & Nico Pestel & Hilmar Schneider & Sebastian Siegloch, 2011. "Reform der Hartz IV‐Hinzuverdienstregelungen: Ein verfehlter Ansatz," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 12-26, February.
    9. Eichhorst, Werner & Zimmermann, Klaus F., 2007. "Dann waren's nur noch vier… Wie viele (und welche) Maßnahmen der aktiven Arbeitsmarktpolitik brauchen wir noch? Eine Bilanz nach der Evaluation der Hartz-Reformen," IZA Discussion Papers 2605, Institute of Labor Economics (IZA).
    10. Hans-Werner Sinn & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2007. "Reform concepts for increasing employment in the low-income sector: an overview," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(04), pages 03-20, February.
    11. 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.
    12. Jochen Michaelis & Alexander Spermann, 2009. "Geringqualifizierte Arbeit, Marktlöhne und Sozialpolitik: Konzepte für Deutschland," MAGKS Papers on Economics 200920, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Eichhorst, Werner, 2007. "Wachstumsaspekte der Arbeitsmarktpolitik - Von den Nachbarn lernen," IZA Research Reports 13, Institute of Labor Economics (IZA).
    14. Dennis Snower & Alessio Brown & Christian Merkl, 2007. "Einstellungsgutscheine effektiver als Kombilöhne," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(04), pages 37-41, February.
    15. Brown, Alessio J. G. & Merkl, Christian & Snower, Dennis J., 2007. "Einstellungsgutscheine effektiver als Kombilöhne: Reformkonzepte zur Erhöhung der Beschäftigung im Niedriglohnbereich. Niedriglohnsektor," Open Access Publications from Kiel Institute for the World Economy 3966, Kiel Institute for the World Economy (IfW Kiel).
    16. Schöb, Ronnie, 2007. "Soziale Grundsicherung und Beschäftigung," Discussion Papers 2007/12, Free University Berlin, School of Business & Economics.
    17. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four ...: How Many (and Which) Measures of Active Labor Market Policy Do We Still Need? ; Finding a Balance after the Evaluation of the Hartz Reforms in Germany," Discussion Papers of DIW Berlin 685, DIW Berlin, German Institute for Economic Research.

    More about this item

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wirtdi:42699. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.