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Mehr Beschäftigung durch Subventionierung der Sozialbeiträge? Eine empirische Evaluation aktueller Reformvorschläge

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  • Peter Haan
  • Viktor Steiner

Abstract

We analyse two recent proposals suggesting the subsidy of social security contributions in order to increase employment in the low wage sector in Germany. Our findings based on a behavioral microsimulation model show: First, both reforms have only small effects on labor force participation and modest positive effects on total working hours. Second, a subsidy based on individual earnings rather than on family income is more favourable to employment as it avoids the well-known negative work incentives of secondary earners. Copyright 2007 die Autoren Journal compilation 2007, Verein für Socialpolitik und Blackwell Publishing Ltd.

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  • Peter Haan & Viktor Steiner, 2007. "Mehr Beschäftigung durch Subventionierung der Sozialbeiträge? Eine empirische Evaluation aktueller Reformvorschläge," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(4), pages 378-388, November.
    • Handle: RePEc:bla:perwir:v:8:y:2007:i:4:p:378-388
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    References listed on IDEAS

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    1. Olivier Bargain & Marco Caliendo & Peter Haan & Kristian Orsini, 2010. "“Making work pay” in a rationed labor market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 323-351, January.
    2. Peter Haan & Michal Myck, 2007. "Apply with Caution: Introducing UK-Style In-Work Support in Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 43-72, March.
    3. Peter Haan & Viktor Steiner, 2008. "Making Work Pay for the Elderly Unemployed - Evaluating Alternative Policy Reforms for Germany," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(3), pages 380-402, September.
    4. Kristian Orsini, 2007. "Is Belgium "Making Work Pay" ?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(2), pages 193-220.
    5. Viktor Steiner & Katharina Wrohlich, 2004. "Work Incentives and Labor Supply Effects of the 'Mini-Jobs Reform' in Germany," Discussion Papers of DIW Berlin 438, DIW Berlin, German Institute for Economic Research.
    6. Viktor Steiner & Peter Haan & Katharina Wrohlich, 2005. "Dokumentation des Steuer-Transfer-Mikrosimulationsmodells STSM 1999 - 2002," Data Documentation 9, DIW Berlin, German Institute for Economic Research.
    7. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Aktivierende Sozialhilfe - Ein Weg zu mehr Beschäftigung und Wachstum," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, May.
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    Cited by:

    1. Viktor Steiner, 2007. "Beschäftigungsförderung und Einkommenssicherung im Niedriglohnbereich: Wege und Irrwege," Discussion Papers of DIW Berlin 747, DIW Berlin, German Institute for Economic Research.
    2. Müller, Kai-Uwe & Steiner, Viktor, 2011. "Beschäftigungswirkungen von Lohnsubventionen und Mindestlöhnen - Zur Reform des Niedriglohnsektors in Deutschland," Discussion Papers 2011/4, Free University Berlin, School of Business & Economics.

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