Arbeitspapier
Work Incentives and Labor Supply Effects of the 'Mini-Jobs Reform' in Germany
We analyze the work incentives and labor supply effects of the so-called mini- jobs reform (subsidies of social security contributions to people with low-earnings jobs) introduced in Germany in April 2003. The analysis is based on a structural labor supply model embedded in a detailed tax-benefit microsimulation model for which we use the German Socio-Economic Panel (GSOEP). Our simulation results show that the likely employment effects of the mini-jobs reform will be small. The small positive participation effect is outweighed by a negative hours effect among already employed workers. The fiscal effects of the reform are also likely to be negative. We conclude that the analyzed mini-job reform is not an effective policy to increase employment of people with low earnings capacity.
- Language
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Englisch
- Bibliographic citation
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Series: DIW Discussion Papers ; No. 438
- Classification
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Wirtschaft
Fiscal Policies and Behavior of Economic Agents: Household
Time Allocation and Labor Supply
- Subject
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Arbeitsangebot
Ökonomischer Anreiz
Ungeschützte Beschäftigung
Reform
Beschäftigungseffekt
Deutschland
- Event
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Geistige Schöpfung
- (who)
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Steiner, Viktor
Wrohlich, Katharina
- Event
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Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
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Berlin
- (when)
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2004
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Steiner, Viktor
- Wrohlich, Katharina
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2004