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The Untold Story of Midijobs

Author

Listed:
  • Herget Anna
  • Riphahn Regina T.

    (Friedrich-Alexander-University Erlangen-Nürnberg, Nürnberg, Germany)

Abstract

Midijobs are employment relationships with moderate monthly earnings that benefit from payroll tax subsidies. Since 2003, the subsidy is universally available for all regions, industries, individuals, and employers in Germany. Recently, more than 2.9 million individuals, i.e., almost 9 percent of the German labor force covered by the social security system took advantage of Midijobs. This paper describes the program, its motivation, and utilization over time. We characterize the labor market transitions leading into and out of Midijob employment, the duration of Midijob utilization, and compare recent developments with patterns of program utilization that were observed early on.

Suggested Citation

  • Herget Anna & Riphahn Regina T., 2022. "The Untold Story of Midijobs," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 242(3), pages 309-341, June.
    • Handle: RePEc:jns:jbstat:v:242:y:2022:i:3:p:309-341:n:5
    DOI: 10.1515/jbnst-2021-0025
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    More about this item

    Keywords

    Midijobs; Minijobs; payroll tax subsidy; SIAB;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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