Mehr Beschäftigung durch Subventionierung der Sozialbeiträge? Eine empirische Evaluation aktueller Reformvorschläge

Peter Haan and Viktor Steiner

Perspektiven der Wirtschaftspolitik, 2007, vol. 8, issue 4, 378-388

Abstract: Abstract: We analyse two recent proposals suggesting the subsidy of social security contributions in order to increase employment in the low wage sector in Germany. Our findings based on a behavioral microsimulation model show: First, both reforms have only small effects on labor force participation and modest positive effects on total working hours. Second, a subsidy based on individual earnings rather than on family income is more favourable to employment as it avoids the well‐known negative work incentives of secondary earners.

Date: 2007
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