IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Long Hours for Low Pay

  • Karl Brenke
Registered author(s):

    There has been no robust growth of the low-pay sector in Germany since 2006. Over the past few years, a constant 22 percent of all employees have fallen into this category. The job structure within the low-pay sector has not changed in the last decade. In the economy as a whole, however, there has been less and less demand for low-skilled work, which is increasingly becoming concentrated in the low-pay sector. The low-pay sector include many people in part-time and, in particular, marginal employment. Only half of them are in full-time employment. As a result of low hourly rates, they accept long working hours so as to be able to earn a reasonable living. Those in full-time employment in the low-pay sector work an average of almost 45 hours a week, and a quarter of them 50 hours or more. However, this does not go very far towards compensating for the disparity between their pay and average monthly earnings. Working hours comparable to those of low-wage earners are otherwise only seen at the top end of the pay scale, in other words, among high earners in full-time employment. The majority of part-time workers, particularly those with mini-jobs would like to work more and earn more; a hidden underemployment is evident here. Working in the low-pay sector does not automatically or normally go hand in hand with social welfare benefits; only one in eight of low earners are Hartz IV benefit recipients. The proportion of people in full-time employment in the low-pay sector is particularly small; they only claim state benefits if they have to provide for a larger family. And only a minority of low-wage earners in part-time work or with mini-jobs receive social welfare benefits. There are normally other people living in their household who are in employment, or there is another source of income such as a pension or private support payments.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.405506.de/diw_econ_bull_2012-07-1.pdf
    Download Restriction: no

    Article provided by DIW Berlin, German Institute for Economic Research in its journal DIW Economic Bulletin.

    Volume (Year): 2 (2012)
    Issue (Month): 7 ()
    Pages: 3-12

    as
    in new window

    Handle: RePEc:diw:diwdeb:2012-7-1
    Contact details of provider: Postal: Mohrenstra├če 58, D-10117 Berlin
    Phone: xx49-30-89789-0
    Fax: xx49-30-89789-200
    Web page: http://www.diw.de/enEmail:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:diw:diwdeb:2012-7-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.