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The hollow in the Eiger North Face - comments on the Mainz Model and the welfare state in general

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  • Hans-Werner Sinn

Abstract

The German government has decided to extend the Mainz Model of wage subsidies to the country as a whole, thus supporting an incentive-based social policy aimed at subsidising work instead of idleness. However, the Mainz Model can only ameliorate the problem of unemployment; it offers no basis for a sensible wage determination policy. The Ifo Institute therefore proposes a three-staged model based on the American model of the earned income tax credit adapted to conditions in Germany.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:03:p:20-25
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    File URL: https://www.ifo.de/DocDL/ifosd_2002_3_2.pdf
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    Cited by:

    1. Ronnie Schöb und Joachim Weimann & Joachim Weimann, 2003. "Kombilohn: Die Magdeburger Alternative," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 4(1), pages 1-17, February.
    2. Stefanie Gäbler, 2015. "Gekommen, um zu bleiben – Fiskalische Effekte ausländischer Studierender in Deutschland," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(05), pages 32-41, October.
    3. Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (ed.), 2006. "Arbeitslosengeld II reformieren: Ein zielgerichtetes Kombilohnmodell. Expertise im Auftrag des Bundesministers für Wirtschaft und Technologie," Occasional Reports / Expertisen, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, number 75364, April.
    4. Brigitte Lestrade, 2003. "Subventions salariales en Allemagne : Le “Kombilohn” à l'épreuve," Innovations, De Boeck Université, vol. 17(1), pages 171-194.
    5. Holger Bonin & Wolfram Kempe & Hilmar Schneider, 2003. "Kombilohn oder Workfare?: Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 51-67.
    6. Steffen J. Roth, 2003. "Arbeitsmarktinstrumente und gesellschaftliche Normen - Das Mainzer-Modell untergräbt gesellschaftliche Normen und verschärft damit die Probleme, die es zu überwinden glaubt," Otto-Wolff-Institut Discussion Paper Series 01/2003, Otto-Wolff-Institut für Wirtschaftsordnung, Köln, Deutschland.
    7. Andreas Knabe, 2006. "Warum Zuverdienstregeln und Kinderzuschlag negative Arbeitsanreize setzen (Negative Arbeitsanreize durch Zuverdienstregeln und Kinderzuschlag) : Themenschwerpunkt Arbeitslosengeld II [zwei]," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 10-15, 04.
    8. Andreas Knabe, 2006. "Warum Zuverdienstregeln und Kinderzuschlag negative Arbeitsanreize setzen (Negative Arbeitsanreize durch Zuverdienstregeln und Kinderzuschlag) : Themenschwerpunkt Arbeitslosengeld II [zwei]," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages .10-15, April.

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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