Marginal employment from the perspective of employees and establishments as well as the distribution and labour market effects of extension

Abstract

"The present IAB statement addresses the draft legislation of the FDP parliamentary group for the dynamisation of income limits in marginal employment (Bundestag printed matter 19/4764). The draft legislation provides for the automatic dynamisation of the hitherto rigid income limits for marginal employment ('mini jobs') and employment in the sliding social security contribution scale ('midi jobs') by linking them to the development of general statutory minimum wages The income limit for marginal employment is to be set at 60 times the general statutory minimum wage, and the upper end of the sliding social security contribution scale for midi jobs at 145 times the minimum wage. The statement of the IAB will address the development and structure of marginal employment as well as the motivation to enter into marginal employment, the situation of workers in marginal employment, and the available scientific findings on the effects of marginal employment on the transition to employment subject to social security contributions ('bridge effects'). The immediate distribution effects resulting from the dynamisation of income limits will then be discussed together with the expected effect on labour supply. In conclusion, the findings on marginal employment relationships will be presented from an establishment perspective. The IAB believes that dynamisation of income limits is not an adequate means to improve the situation of people at the lower earnings level. A reform of marginal employment should not tend towards extension, as intended in the draft legislation submitted by the FDP parliamentary group, but towards gradual limitation. In doing so, the rules in the context of a more comprehensive reform would then have to be mainly oriented towards a limitation of marginal employment to persons for whom employment subject to social security contributions is more or less out of the question, such as pupils, students, and retirees. Moreover, the corresponding framework conditions would have to be created to be able to realise wage increases or working time extensions within such employment subject to social security contributions." (Author's abstract, IAB-Doku) ((en))

Cite article

Bruckmeier, K., Lietzmann, T., Mühlhan, J. & Stegmaier, J. (2018): Geringfügige Beschäftigung aus der Perspektive von Beschäftigten und Betrieben sowie Verteilungs- und Arbeitsmarktwirkungen einer Ausweitung. Öffentliche Anhörung von Sachverständigen vor dem Ausschuss für Arbeit und Soziales des Deutschen Bundestages am 26. November 2018. (IAB-Stellungnahme 16/2018), Nürnberg, 17 p.