Financing Social Security: Simulating Different Welfare State Systems for Germany

Caroline Dieckhoener () and Andreas Peichl
Additional contact information
Caroline Dieckhoener: University of Cologne
Authors registered in the RePEc Author Service: Caroline Löffler ()

No 4135, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In Germany, there is an ongoing debate about how to increase the efficiency of the social security system and especially its financing. The aim of this paper is to simulate different financing systems for Germany. The introduction of a Liberal British or the Southern Greek financing system increases inequality and poverty, as well as labour supply incentives. The introduction of the Social-democratic Danish financing system decreases inequality of incomes, but does not necessarily lead to less poverty. Tax payments are extremely high, whereas social contribution payments are relatively low leading to mixed incentives effects.

Keywords: social security; welfare states; comparative analysis; EUROMOD (search for similar items in EconPapers)
JEL-codes: C81 D31 H24 (search for similar items in EconPapers)
Pages: 77 pages
Date: 2009-04
New Economics Papers: this item is included in nep-cmp and nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://docs.iza.org/dp4135.pdf (application/pdf)

Related works:
Working Paper: Financing Social Security: Simulating Different Welfare State Systems for Germany (2009)
Working Paper: Financing social security: simulating different welfare state systems for Germany (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp4135

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().