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Kombilohn oder Workfare? Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien (Wage Subsidies vs. Workfare: On the Effectiveness of Alternative Strategies to Promote Low-Skilled Employment in Germany)

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Author Info
Bonin, Holger (IZA Bonn)
Kempe, Wolfram (IZA Bonn)
Schneider, Hilmar () (IZA Bonn)

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Abstract

Das heutige System der sozialen Mindestsicherung verhindert in Deutschland die Ausbildung eines Niedriglohnsektors. Dies ist eine wesentliche Ursache für die hohe Arbeitslosigkeit Geringqualifizierter. Dieser Beitrag stellt zwei häufig genannte Maßnahmen zur Überwindung sozialstaatlicher Beschäftigungsschwellen einander gegenüber. Am Beispiel eines aktuellen, symptomorientierten Vorschlags für Lohnsubventionen durch Absenkung der Arbeitnehmerbeiträge zur Sozialversicherung auf niedrige Einkommen wird gezeigt, dass Förderung kleiner Markteinkommen durch Kombilöhne die Erwerbsbeteiligung nur unwesentlich erhöht. Zugleich können Mitnahmeeffekte entstehen, mit denen unerwünschte Arbeitszeitwirkungen und hohe fiskalische Kosten verbunden sind. Ein alternativer, ursachenorientierter Ansatz ist die Senkung des sozialen Leistungsniveaus durch Workfare. Eine Abschätzung des Einkommenspotenzials von Transferbeziehern auf Grundlage des Sozio-ökonomischen Panels veranschaulicht, dass sich mit der Verpflichtung erwerbsfähiger Sozialhilfeempfänger zu sozial nützlicher Arbeit bei unverändertem Niveau der sozialen Mindestsicherung deutlich positive Beschäftigungseffekte erzielen lassen. (The German system of generous subsistence payments to the unemployed generates disincentives for labor supply, preventing employment at low wages. This creates substantial unemployment of the low-skilled. This paper discusses the quantitative effects of two frequent proposals to overcome the work barriers set up by the welfare state. Using a recent concept of raising in-work income through cutting social insurance contributions at low earnings as an example, we illustrate that wage subsidies have negligible impact on labor force participation. In addition, the policy might have costly side effects, as it creates parttime incentives beyond the target group of the low qualified. As an alternative, we assess the labor market impact of a workfare strategy. The potential wages of transfer recipients, estimated on the basis of the German Socio-Economic Panel, suggest that combining social transfers with the obligation to work could substantially improve labor market performance of the employable low-skilled.)

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 587.

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Length: 26 pages
Date of creation: Sep 2002
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Handle: RePEc:iza:izadps:dp587

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Related research
Keywords: low-wage subsidies; workfare; labor supply; Germany;

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Find related papers by JEL classification:
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - 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

References listed on IDEAS
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.:

  1. Bat COCKX & Muriel DEJEMEPPE, 2002. "Do the Higher Educated Unemployed Crowd out the Lower Educated Ones in a Competition for Jobs ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
    Other versions:
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  3. Hilmar Schneider & Klaus F. Zimmermann & Holger Bonin & Karl Brenke & John Haisken-DeNew & Wolfram Kempe, 2002. "Beschäftigungspotenziale einer dualen Förderstrategie im Niedriglohnbereich," IZA Research Reports 5, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Annette Mummert & Friedrich Schneider, 2001. "The German Shadow Economy: Parted in a United Germany?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(3), pages 286-, July.
  5. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, vol. 89(5), pages 1259-1278, December. [Downloadable!] (restricted)
    Other versions:
  6. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Household Labor Supply Effects of Low-Wage Subsidies in Germany," IZA Discussion Papers 637, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Johnson, George E, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring. [Downloadable!] (restricted)
  8. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier. [Downloadable!] (restricted)
    Other versions:
  9. Peter Dolton & Yvonne Balfour, 2002. "Der New Deal, "Welfare to Work"-Programme in Großbritannien," Perspektiven der Wirtschaftspolitik, Blackwell Publishing, vol. 3(2), pages 175-187, 05. [Downloadable!] (restricted)
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