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Kombilöhne gegen Erwerbsarmut: Warum die USA erfolgreicher sind als Deutschland

Author

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  • Norbert Berthold

  • Mustafa Coban

Abstract

“Make work pay” strategies are an integral part of labour market policy instruments in developed countries. There are two considerations behind these measures. Firstly, subsidizing employment at the bottom of the income distribution should motivate the unemployed to accept jobs with lower market wages. Secondly, the wage supplement should increase the living standards of the recipients and reduce the risk of poverty. The U.S. EITC and the German UB II based on these two goals. Our paper begins with an overview of these two wage top-up schemes. This is followed by an empirical evaluation of the two instruments regarding their capacity to prevent in-work poverty and to strengthen labour market participation. The EITC obtains better results compared to UB II in both regards. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Norbert Berthold & Mustafa Coban, 2014. "Kombilöhne gegen Erwerbsarmut: Warum die USA erfolgreicher sind als Deutschland," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(2), pages 118-124, February.
    • Handle: RePEc:spr:wirtsc:v:94:y:2014:i:2:p:118-124
    DOI: 10.1007/s10273-014-1635-4
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    Cited by:

    1. Herget, Anna & Riphahn, Regina T., 2024. "Phasing Out Payroll Tax Subsidies," IZA Discussion Papers 17587, IZA Network @ LISER.
    2. Ulrike Huemer & Rainer Eppel & Marion Kogler & Helmut Mahringer & Lukas Schmoigl & David Pichler, 2021. "Effektivität von Instrumenten der aktiven Arbeitsmarktpolitik in unterschiedlichen Konjunkturphasen," WIFO Studies, WIFO, number 67250.
    3. Bernard Michael Gilroy & Julia Günthner, 2017. "The German Precariat and the Role of Fundamental Security - Is the Unconditional Basic Income a Possible Solution for the Growing Precarity in Germany?," Working Papers CIE 109, Paderborn University, CIE Center for International Economics.
    4. Anna Herget & Regina T. Riphahn, 2024. "Phasing Out Payroll Tax Subsidies," CESifo Working Paper Series 11605, CESifo.

    More about this item

    Keywords

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    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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