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Can the introduction of combi-wages lastingly improve the labour market situation?

Author

Listed:
  • Viktor Steiner
  • Hans-Peter Klös
  • Holger Schäfer
  • Ulrich Walwei
  • Sabine Dann
  • Martin Rosemann

Abstract

According to the "Mainz Model" low-wage earners who take on a job with obligatory social insurance contributions will receive subsidies for their payroll taxes. In the opinion of Dr. Hans-Peter Klös and Holger Schäfer, Institute of the German Economy in Cologne, this will hardly lead to greater job-creation effects. For Viktor Steiner, CESifo, even negative job effects of the Mainz Model cannot be ruled out. Dr. Ulrich Walwei, IAB, warns against "a comprehensive and massive wage subsidisation in the confines of an otherwise unchanged tax and transfer system". Sabine Dann and Martin Rosemann, IAW Tübingen, argue for a combination of subsidies and job-entry payments

Suggested Citation

  • Viktor Steiner & Hans-Peter Klös & Holger Schäfer & Ulrich Walwei & Sabine Dann & Martin Rosemann, 2002. "Can the introduction of combi-wages lastingly improve the labour market situation?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(04), pages 5-18, February.
  • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:04:p:5-18
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    References listed on IDEAS

    as
    1. Sabine Dann & Andrea Kirchmann & Alexander Spermann & Jürgen Volkert, 2001. "Das Einstiegsgeld - eine zielgruppenorientierte negative Einkommenssteuer: Konzeption, Umsetzung und eine erste Zwischenbilanz nach 15 Monaten in Baden-Württemberg," IAW Discussion Papers 01, Institut für Angewandte Wirtschaftsforschung (IAW).
    2. Kempe, Wolfram & Schneider, Hilmar, 2001. "Lohn- und Einkommenssubventionen für Sozialhilfe- und Arbeitslosenhilfebezieher," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 7(16), pages 415-423.
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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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