Effects of the introduction of liability to social security payments for 'marginal' part-time workers : an evaluation of the reform law for "630-DM jobs"

Abstract

"With the longitudinal data from the SOEP this paper examines how 'marginal' part-time workers have responded to the liability to social security payments for such employment relationships, which was introduced in April 1999. As solely 'marginal' part-time workers and those with 'marginal' part-time second jobs are affected by the new regulations in very different ways, separate empirical analyses are carried out. The dynamics of 'marginal' part-time employment and second jobs are compared with a pseudo-contrafactual situation in order to be able to analyse the influences of the reform which go beyond the 'natural' changes. Furthermore, econometric methods are used to examine what determinants influence a worker's remaining in or leaving 'marginal' part-time employment or a 'marginal' part-time second job. The results show that a change has occurred in the structure of 'marginal' part-time employment: people with 'marginal' part-time second jobs are tending to be substituted by workers whose sole job is 'marginal' part-time. The change in structure can be explained from both the supply-side and the demand-side. The aim of including income from 'marginal' part-time employment to finance the social insurance systems has certainly been approached. However, it remains doubtful whether the workers, and especially the married women, will build up any considerable entitlements of their own particularly in the statutory pension scheme. Their incentives for changing to part-time or full-time employment have been reduced even further by the reform." (Author's abstract, IAB-Doku) ((en))

Cite article

Heineck, G. & Schwarze, J. (2001): Auswirkungen der Einführung der Sozialversicherungspflicht für geringfügige Beschäftigung. Eine Evaluation des "630-DM-Jobs"-Reformgesetzes. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 34, No. 3, p. 314-327.