The Threat to the German Welfare State
AbstractGermany is in a dilemma. Low wage competition via product and factor markets increases the demands on the welfare state, but increased systems competition in the context of international factor mobility reduces the possibilities of maintaining it. The welfare state has important allocative functions. It is an insurance against career risks and it stimulates risk taking and economic growth. However, it also has severe moral hazard effects by reducing work incentives. To help the welfare state survive and improve its performance, the paper advocates the home country principle for the treatment of immigrants, the introduction of funded elements in the pension system, and employment subsidies at the expense of ordinary welfare payments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 320.
Date of creation: 2000
Date of revision:
Other versions of this item:
- Sinn, Hans-Werner, 2000. "The threat to the German welfare state," Munich Reprints in Economics, University of Munich, Department of Economics 19861, University of Munich, Department of Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hans-Werner Sinn, 1998.
"The Pay-As-You-Go Pension System as a Fertility Insurance and Enforcement Device,"
NBER Working Papers
6610, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 1998. "The Pay-As You-Go Pension System as a Fertility Insurance and Enforcement Device," CEPR Discussion Papers 2023, C.E.P.R. Discussion Papers.
- Sinn, Hans-Werner, 1996.
"Social Insurance, Incentives and Risk Taking,"
Munich Reprints in Economics, University of Munich, Department of Economics
19834, University of Munich, Department of Economics.
- Sinn, Hans-Werner, 1990.
"Tax harmonization and tax competition in Europe,"
European Economic Review,
Elsevier, vol. 34(2-3), pages 489-504, May.
- Hans-Werner Sinn, 1990. "Tax Harmonization and Tax Competition in Europe," NBER Working Papers 3248, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 1990. "Tax harmonization and tax competition in Europe," Munich Reprints in Economics, University of Munich, Department of Economics 19846, University of Munich, Department of Economics.
- Nickell, Stephen J & Symons, James, 1990. "The Real Wage-Employment Relationship in the United States," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(1), pages 1-15, January.
- Burgess, Simon M, 1988. "Employment Adjustment in UK Manufacturing," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 98(389), pages 81-103, March.
- Laura Chadwick & JÃ¼rgen Volkert, 2003. "Making Work Pay: U.S. American models for a German context?," IAW Discussion Papers, Institut fÃ¼r Angewandte Wirtschaftsforschung (IAW) 08, Institut fÃ¼r Angewandte Wirtschaftsforschung (IAW).
- Giancarlo Corsetti & John Flemming & Seppo Honkapohja & Willi Leibfritz & Gilles Saint-Paul & Hans-Werner Sinn & Xavier Vives, 2002.
"Welfare to Work,"
Ifo Institute for Economic Research at the University of Munich, vol. 2002(CESIFOFOR), pages 71-86, 04.
- Rüdiger Waldkirch & Matthias Meyer & Karl Homann, 2009. "Accounting for the Benefits of Social Security and the Role of Business: Four Ideal Types and Their Different Heuristics," Journal of Business Ethics, Springer, vol. 89(3), pages 247-267, November.
- Lindbeck, Assar, 2003.
"Improving the Performance of the European Social Model - The Welfare State over the Life Cycle,"
Working Paper Series, Research Institute of Industrial Economics
587, Research Institute of Industrial Economics.
- Lindbeck, Assar, 2003. "Improving the Performance of the European Social Model - The Welfare State over the Life Cycle," Seminar Papers, Stockholm University, Institute for International Economic Studies 717, Stockholm University, Institute for International Economic Studies.
- Wagner, Ulrich, 2002. "Beschäftigungshemmende Reformstaus in der Bundesrepublik Deutschland und wie man sie auflösen könnte," Beiträge der Hochschule Pforzheim 102, Pforzheim University.
- Antonis Adam & Thomas Moutos, 2006.
"A Politico-Economic Analysis of Minimum Wages and Wage Subsidies,"
CESifo Working Paper Series
1810, CESifo Group Munich.
- Adam, Antonis & Moutos, Thomas, 2011. "A politico-economic analysis of minimum wages and wage subsidies," Economics Letters, Elsevier, vol. 110(3), pages 171-173, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.