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Subventions salariales en Allemagne : Le “Kombilohn” à l'épreuve

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  • Brigitte Lestrade

Abstract

Until 1998, wage subsidies were practically unknown in Germany. The new government under Chancellor Gerhard Schröder introduced them as local projects in the framework of his Employment Pact. In March 2002, one particular variation on these projects, known as the Mainz model, was extended to the whole of Germany. It was supposed to promote the offer of jobs by means of subsidizing wageearners' contributions to the social security system. This paper analyses first the specificities of unemployment in Germany. It insists particularly on those of long-term unemployment the Mainz model is supposed to reduce. Then it presents the different local projects introduced since 1999 as well as the Mainz model chosen by the government in spite of the scepticism of numerous labour specialists. Their critical remarks will help us understand the general attitude of Germany who is far more reticent towards wage subsidies than other industrial countries, France and Great Britain in particular.

Suggested Citation

  • Brigitte Lestrade, 2003. "Subventions salariales en Allemagne : Le “Kombilohn” à l'épreuve," Innovations, De Boeck Université, vol. 17(1), pages 171-194.
    • Handle: RePEc:cai:inndbu:inno_017_0171
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    References listed on IDEAS

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    1. Hans-Werner Sinn, 2002. "The hollow in the Eiger North Face - comments on the Mainz Model and the welfare state in general," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(03), pages 20-25, February.
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