IDEAS home Printed from https://ideas.repec.org/a/bla/germec/v11y2010i3p266-277.html
   My bibliography  Save this article

Does Work Always Pay in Germany?

Author

Listed:
  • Christoph Scheicher

Abstract

. Income redistribution in Germany is the result of a combination of several redistribution instruments: there is a complex income tax law, different obligatory social insurances and supplementary benefits. This paper estimates income redistribution by quantile regression, using German EVS data. Two results are obtained: income after redistribution does not always increase in line with income before redistribution, i.e. for people with a low income before redistribution, it does not make sense to increase their efforts, since more work means less earnings. Further, an increasing redistribution rate for higher incomes is not always observable from the data.

Suggested Citation

  • Christoph Scheicher, 2010. "Does Work Always Pay in Germany?," German Economic Review, Verein für Socialpolitik, vol. 11(3), pages 266-277, August.
    • Handle: RePEc:bla:germec:v:11:y:2010:i:3:p:266-277
    DOI: 10.1111/j.1468-0475.2009.00481.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0475.2009.00481.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0475.2009.00481.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:ces:ifodic:v:3:y:2005:i:2:p:14567648 is not listed on IDEAS
    2. Wolfgang Ochel, 2005. "Hartz IV – Welfare to Work in Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(2), pages 18-25, 07.
    3. Wolfgang Ochel, 2005. "Hartz IV – Welfare to Work in Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(02), pages 18-25, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tim Friehe & Mario Mechtel, 2017. "Gambling to leapfrog in status?," Review of Economics of the Household, Springer, vol. 15(4), pages 1291-1319, December.
    2. Tim Friehe & Mario Mechtel, 2012. "Conspicuous Consumption and Communism: Evidence from East and West Germany," CESifo Working Paper Series 3922, CESifo.
    3. Friehe, Tim & Mechtel, Mario, 2014. "Conspicuous consumption and political regimes: Evidence from East and West Germany," European Economic Review, Elsevier, vol. 67(C), pages 62-81.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olga Grigoriev & Gabriele Doblhammer, 2022. "Does the Mortality of Individuals with Severe Disabilities Contribute to the Persistent East–West Mortality Gap Among German Men?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(2), pages 247-271, May.
    2. Løken, Katrine V. & Lommerud, Kjell Erik & Holm Reiso, Katrine, 2018. "Single mothers and their children: Evaluating a work-encouraging welfare reform," Journal of Public Economics, Elsevier, vol. 167(C), pages 1-20.
    3. Watson, Dorothy & Maître, Bertrand & Whelan, Christopher T., 2012. "Work and Poverty in Ireland: An Analysis of CSO Survey on Income and Living Conditions 2004-2010," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT226.
    4. Ehrich, Malte & Munasib, Abdul & Roy, Devesh, 2018. "The Hartz reforms and the German labor force," European Journal of Political Economy, Elsevier, vol. 55(C), pages 284-300.
    5. Krause, Michael U. & Uhlig, Harald, 2012. "Transitions in the German labor market: Structure and crisis," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 64-79.
    6. Michael C. Burda & Jennifer Hunt, 2011. "What Explains the German Labor Market Miracle in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 273-335.
    7. Vedeler Johnsen, Julian & Holm Reiso, Katrine, 2017. "Economic Impacts of Workfare Reforms for Single Mothers: Benefit Substitution and Labour supply responses," Working Papers in Economics 4/17, University of Bergen, Department of Economics.
    8. repec:hum:wpaper:sfb649dp2011-031 is not listed on IDEAS
    9. Michael Stops, 2016. "Revisiting German labour market reform effects—a panel data analysis for occupational labour markets," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-43, December.
    10. Ivar Lødemel, 2005. "Workfare: Towards a New Entitlement or a Cost-cutting Device Targeted at Those Most Distant from the Labour Market?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(2), pages 13-17, 07.
    11. Martin Huber & Michael Lechner & Conny Wunsch & Thomas Walter, 2011. "Do German Welfare‐to‐Work Programmes Reduce Welfare Dependency and Increase Employment?," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 182-204, May.
    12. Gheorghe Matei & Nicolae Tudose, 2014. "The evolution of social policy in Britain and Germany," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 14(1), pages 189-196.
    13. Schmitz, Sebastian, 2017. "The effects of Germany's new minimum wage on employment and welfare dependency," Discussion Papers 2017/21, Free University Berlin, School of Business & Economics.
    14. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2006. "Aktivierende Sozialhilfe 2006 - das Kombilohn-Modell des ifo Instituts," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(02), pages 06-27, January.
    15. repec:bla:germec:v:11:y:2010:i::p:266-277 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:11:y:2010:i:3:p:266-277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.