Niedriglohn und soziale Sicherung
In the need to reform the German labour market, the so-called ‚Hartz IV’- Act cut down subsidies for unemployed people in order to increase the pressure for searching for a new job. By law, low-paid jobs shall be introduced. However, even if this creates employment, there will be a future problem: p...
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| Format: | Others |
| Language: | German |
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Universität Potsdam
2005
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| Online Access: | http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-47850 http://opus.kobv.de/ubp/texte_eingeschraenkt_welttrends/2010/4785/ |
| Summary: | In the need to reform the German labour market, the so-called ‚Hartz IV’- Act cut down subsidies for unemployed people in order to increase the pressure for searching for a new job. By law, low-paid jobs shall be introduced. However, even if this creates employment, there will be a future problem: pensions for these people will dramatically drop below the poverty line. The author argues that, in order to avoid such ‘poverty-traps’, an alternative social support system should be considered: a ‘tax transfer system’ with lowered income tax, yet complete reduction of legal exceptions on the one hand, and transfer systems combined with work incentives on the other hand. |
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