Arbeitsmarktwirkungen einer Senkung der Sozialabgaben

Abstract

"The connection between high social-security contributions and labour-market performance in Germany is still the subject of heated political debate. Analyses concerning labour supply and labour demand have shown that a reduction in social-security contributions will - ceteris paribus - motivate more people to search for a job and increase company recruitment. In the end, at the macro level of the economy, the labour-market effects largely depend on the level and type of potential counter-financing and the consequences for wage setting. If socialsecurity contributions are reduced by one percentage point and value added tax is used for counter-financing, the employment effect measured in numbers of individuals will be between -17,000 and +129,000. In the case of public expenditure being reduced instead of value added tax being increased, the range of the employment effect will lie between -92,000 and +146,000. If social-security contributions are only, or mainly, reduced for low-wage earners, the labour-market effects will be greater than those associated with an 'across the board' and linear reduction in contributions of the same total value." (Author's abstract, IAB-Doku) ((en))

Cite article

Walwei, U. & Zika, G. (2005): Arbeitsmarktwirkungen einer Senkung der Sozialabgaben. In: Sozialer Fortschritt, Vol. 54, No. 4, p. 77-90.