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More employment via "government profit sharing"?

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  • Ronnie Schöb

Abstract

For unemployment to be reduced in Germany, labour costs must be lowered significantly. However, historically developed income distribution cannot be encroached on without calling into question the social consensus between those who draw income from labour and those who draw income from capital. Dr. Ronnie Schöb, University of Magdeburg, presents a model for de-coupling labour costs from the income of the employed. His proposal is aimed at a "government profit sharing" by which the unemployment insurance contributions are lowered and the Federal Labour Office in return is given equity interests in the enterprises. The state assumes the associated risks, and the portion of labour income that does not flow to the employee but to the state is de-coupled from labour costs.

Suggested Citation

  • Ronnie Schöb, 2001. "More employment via "government profit sharing"?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(21), pages 11-17, October.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:21:p:11-17
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    References listed on IDEAS

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    1. Weitzman, Martin L, 1985. "The Simple Macroeconomics of Profit Sharing," American Economic Review, American Economic Association, vol. 75(5), pages 937-953, December.
    2. Weitzman, Martin L, 1983. "Some Macroeconomic Implications of Alternative Compensation Systems," Economic Journal, Royal Economic Society, vol. 93(372), pages 763-783, December.
    3. Sinn, Hans-Werner, 1997. "Kapitalbeteiligung und Lohndifferenzierung : ein Vorschlag zur Lösung der Beschäftigungskrise," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 30(4), pages 822-827.
    4. Sinn, Hans-Werner, 1997. "Kapitalbeteiligung und Lohndifferenzierung : ein Vorschlag zur Lösung der Beschäftigungskrise," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 30(4), pages 822-827.
    5. Ronnie Schöb, 2002. "Public Profit Sharing," Kyklos, Wiley Blackwell, vol. 55(4), pages 523-542, November.
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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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