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Beschäftigungseffekte und fiskalische Kosten von Lohnsubventionen im Niedriglohnbereich (Employment effects and fiscal costs of wage subsidies in the low-wage sector)

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  • Buslei, Hermann
  • Steiner, Viktor

Abstract

"In this paper the basic manifestations and effects of wage subsidies are outlined and the probable employment effects of the existing subsidies are shown. In addition to this the paper analyses what employment effects and fiscal costs would result from proposed changes to the existing forms of subsidy. Both wage subsidies to firms and wage-related transfers to employees in the form of improved possibilities of earning in addition to receiving social assistance or unemployment benefit are considered. In view of the considerable amount of funding needed per additional employee, wage subsidies to firms in the form of subsidising the social security contributions or a degressively graded subsidy of hourly wages in the entire low-wage sector do not appear to be justifiable alone with the aim of increasing employment. No larger growths in employment are to be expected from improved possibilities of earning in addition to receiving social assistance or unemployment benefit, either." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Buslei, Hermann & Steiner, Viktor, 2000. "Beschäftigungseffekte und fiskalische Kosten von Lohnsubventionen im Niedriglohnbereich (Employment effects and fiscal costs of wage subsidies in the low-wage sector)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(1), pages 54-67.
    • Handle: RePEc:iab:iabmit:v:33:i:1:p:054-067
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    References listed on IDEAS

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    1. Moffitt, Robert, 1985. "A problem with the negative income tax," Economics Letters, Elsevier, vol. 17(3), pages 261-265.
    2. Jürgen Schupp & Joachim Volz & Gert G. Wagner, 1999. "Zuschüsse zu den Sozialversicherungsbeiträgen im Niedriglohnbereich: wenig zielgerichtet und teuer," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 66(27), pages 499-509.
    3. Walwei, Ulrich, 1999. "Subventionierung von niedrigen Löhnen: Zu den Vorschlägen einer Senkung der Sozialversicherungsbeiträge für Geringverdiener," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 32(4), pages 514-535.
    4. Steiner, Viktor & Hagen, Tobias, 2000. "Von der Finanzierung der Arbeitslosigkeit zur Förderung von Arbeit: Analysen und Empfehlungen zur Steigerung der Effizienz und Effektivität der Arbeitsmarktpolitik in Deutschland. Kurzfassung," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110489.
    5. Andrea Bassanini & Jørn Henrik Rasmussen & Stefano Scarpetta, 1999. "The Economic Effects of Employment-Conditional Income Support Schemes for the Low-Paid: An Illustration from a CGE Model Applied to Four OECD Countries," OECD Economics Department Working Papers 224, OECD Publishing.
    6. Riphahn, Regina T. & Thalmaier, Anja & Zimmermann, Klaus F., 1999. "Schaffung von Arbeitsplätzen für Geringqualifizierte," IZA Research Reports 2, Institute of Labor Economics (IZA).
    7. Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
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    1. Hermann Buslei & Viktor Steiner, 2003. "Anreizwirkungen von Lohnsubventionen: welche Bedeutung haben sie für die aktuelle Reformdiskussion?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 94-108.

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