Mini- und Midijobs in Deutschland: Lohnsubventionierung ohne Beschäftigungseffekte? / Mini- and Midi-Jobs in Germany: Do Wage Subsidies have an Effect on Employment?

Berthold Norbert and Mustafa Coban

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2013, vol. 64, issue 1, 289-324

Abstract: Due to the introduction of mini- and midi-jobs in 2003, the final implementation of a subsidized low-wage sector in Germany was completed. After ten years, in 2013, the boundary arrangements of these types of employment were adjusted in order to compensate the interim development of wages. Our paper starts with an explanation on the theoretical effects of wage subsidies. Hereafter we evaluate the effects of mini- and midi-jobs on employment by using a meta-analysis of previous research results. For the two types of employment, however, we can′t find uniquely positive results. They don′t create a bridge between unemployment and employment nor do they serve as a stepping stone to a regular job. Based on the weaknesses of the mini- and midi-jobs, we propose two approaches to reform the low-wage sector in achieving positive effects on employment.

Date: 2013
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DOI: 10.1515/ordo-2013-0115

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