Incentives to work: The case of Germany

Alfred Boss and Thomas Elendner

No 1237, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the ?Hartz IV? reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal (explicit and implicit) tax rates for most groups of the labor force remain high. It is concluded that employment probably will not be affected significantly by that part of the reform which aims at strengthening the incentives to work. Other elements of ?Hartz IV? are only touched on.

Keywords: Contributions to social security; Unemployment benefits; Implicit tax rates; Incentives to work; Income tax rates (search for similar items in EconPapers)
JEL-codes: H24 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1237

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