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Sozialhilfe, Lohnabstand, Leistungsanreize und Mindestlohnarbeitslosigkeit

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  • Boss, Alfred

Abstract

The difference between the potential net wage income and the social welfare payments is measured for different types of private households in Germany. In 2001, the difference is small for households consisting of at least three persons. For three types of households the difference is calculated for the 1962–2001 period; it turns out that it decreased significantly. The (explicit and implicit) marginal tax rates for wage income of the recipients of social assistance are extremely high (up to 100 percent). Thus, the incentives to work are strongly impaired. The downward adjustment of wages for low skilled workers was impeded by the system of social assistance. As a consequence, unemployment increased.

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  • Boss, Alfred, 2001. "Sozialhilfe, Lohnabstand, Leistungsanreize und Mindestlohnarbeitslosigkeit," Kiel Working Papers 1075, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1075
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    References listed on IDEAS

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    1. Boss, Alfred & Gottschalk, Jan & Meier, Carsten-Patrick & Scheide, Joachim & Schmidt, Rainer & Strauß, Hubert, 2001. "Deutschland in der Konjunkturflaute," Open Access Publications from Kiel Institute for the World Economy 2607, Kiel Institute for the World Economy (IfW Kiel).
    2. Hauser, Richard, 1995. "Die Diskussion um die Reform der Sozialhilfe," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 75(8), pages 429-433.
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    4. Siebert, Horst, 1997. "Labor market rigidities and unemployment in Europe," Kiel Working Papers 787, Kiel Institute for the World Economy (IfW Kiel).
    5. Boss, Alfred, 1993. "Zur Entwicklung der Arbeitseinkommen und der Transfereinkommen in der Bundesrepublik Deutschland," Open Access Publications from Kiel Institute for the World Economy 1570, Kiel Institute for the World Economy (IfW Kiel).
    6. Gern, Klaus-Jürgen, 1998. "Das Einkommensteuer- und Transfersystem der Bundesrepublik Deutschland: ein Update," Kiel Working Papers 865, Kiel Institute for the World Economy (IfW Kiel).
    7. Franz Wolfgang, 1999. "Einführung zum Themenheft: Lohnstruktur, Qualifikation und Mobilität," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 219(1-2), pages 1-7, February.
    8. Gundlach, Erich, 1986. "Gibt es genügend Lohndifferenzierung in der Bundesrepublik Deutschland?," Open Access Publications from Kiel Institute for the World Economy 1307, Kiel Institute for the World Economy (IfW Kiel).
    9. Horst Siebert, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer.
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    Cited by:

    1. Tyran, Jean-Robert & Vanin, Paolo & Strulik, Holger, 2006. "Staying on the Dole," CEPR Discussion Papers 5967, C.E.P.R. Discussion Papers.
    2. Boss, Alfred & Elendner, Thomas, 2005. "Verstärkte Arbeitsanreize durch das Arbeitslosengeld II?," Open Access Publications from Kiel Institute for the World Economy 3665, Kiel Institute for the World Economy (IfW Kiel).
    3. Boss, Alfred & Elendner, Thomas, 2005. "Incentives to work: The case of Germany," Kiel Working Papers 1237, Kiel Institute for the World Economy (IfW Kiel).
    4. Arntz, Melanie & Feil, Michael & Spermann, Alexander, 2003. "Die Arbeitsangebotseffekte der neuen Mini- und Midijobs : eine ex-ante Evaluation (The effects of the new mini- and midi-jobs on the suply of labour * an ex-ante evaluation)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(3), pages 271-290.
    5. Fehn, Rainer, 2002. "Arbeitsmarktflexibilisierung und Arbeitslosigkeit," Discussion Paper Series 54, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    6. Boss, Alfred, 2003. "Arbeits- und Investitionsanreize in Deutschland: die Rolle der Abgaben- und Transferpolitik als Determinante des Wachstums des Produktionspotentials," Kiel Working Papers 1148, Kiel Institute for the World Economy (IfW Kiel).
    7. Helmut Rainer & Stefan Bauernschuster & Natalia Danzer & Timo Hener & Christian Holzner & Janina Reinkowski, 2013. "Kindergeld," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 60.
    8. Arntz, Melanie & Feil, Michael & Spermann, Alexander, 2003. "Die Arbeitsangebotseffekte der neuen Mini- und Midijobs : eine ex-ante Evaluation (The effects of the new mini- and midi-jobs on the suply of labour * an ex-ante evaluation)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(3), pages 271-290.
    9. Julia Bock-Schappelwein, 2004. "Arbeitslosigkeit und offene Sozialhilfe in Österreich. Eine quantitative Analyse," WIFO Studies, WIFO, number 25162, April.
    10. Spermann, Alexander & Feil, Michael & Arntz, Melanie, 2003. "Maxi-Arbeitsangebotseffekte oder zusätzliche Arbeitslose durch Mini- und Midi-Jobs?," ZEW Discussion Papers 03-67, ZEW - Leibniz Centre for European Economic Research.
    11. Christensen, Björn, 2001. "Mismatch-Arbeitslosigkeit unter Geringqualifizierten (Mismatch-unemployment among the low-skilled)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 34(4), pages 506-514.
    12. Christensen, Björn, 2001. "Mismatch-Arbeitslosigkeit unter Geringqualifizierten (Mismatch-unemployment among the low-skilled)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 34(4), pages 506-514.

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    More about this item

    Keywords

    incentives to work; poverty trap; unemployment; social assistance;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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