Arbeitsanreize für gering Qualifizierte: Anforderungen an das Transfersystem

Vierling Michael ()
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Vierling Michael: Fachhochschule des Bundes für öffentliche Verwaltung, Fachbereich Bundeswehrverwaltung, Seckenheimer Landstraße 10, D-68163 Mannheim

Zeitschrift für Wirtschaftspolitik, 2002, vol. 51, issue 3, 376-398

Abstract: Germany’s social aid and unemployment assistance do not support work incentives, neither with regard to their levels nor their reductions when working hours increase. Thus the social policy trap is complemented by the trap of wages that are too high to allow for full employment. As a consequence, the less qualified are excluded from work. This part of the unemployment problem could be avoided. The key question is how to reconcile incentives for work and for obtaining state transfer. How can the “make-work-pay”-target be achieved? It seems crucial that social aid and unemployment assistance be transferred from income substitutes to wage supplements for those who can work. Positive work incentives can be expected if the transfer depends on hourly wages and, consequently, on the hours worked. The transfer can be designed as a wage rate subsidy or as an exemption from social security contributions. The features of the “Mainzer Modell”, recently introduced on the federal level, do not meet this requirement. However, the USA’s EITC income tax transfer scheme - at least EITC’s income supplementation for the lowest income ranges - could actually serve as a model for change in Germany.

Date: 2002
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DOI: 10.1515/zfwp-2002-0308

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