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Zur Entwicklung des Anspruchslohns in Deutschland

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  • Boss, Alfred

Abstract

Due to labor market reforms in Germany some years ago, the incentives to work changed. The paper analyzes the effects on the reservation wages for specific groups. It is assumed that reservation wages are determined by the replacement rates implied by the system of unemployment benefits and by the rules of means-tested social assistance. In addition, the paper describes the development of the replacement rates in the recent decades. As a side effect, it is intended to support the search for an indicator for the reservation wage which can be used to explain the unemployment rate in a macroeconomic model for Germany. It turns out that the replacement rates increased in the period 1950 to 1975. Thereafter, the rates for the specific groups developed differently. However, in 2008 the rates are higher than they had been in the fifties and the sixties.

Suggested Citation

  • Boss, Alfred, 2008. "Zur Entwicklung des Anspruchslohns in Deutschland," Kiel Working Papers 1463, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1463
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    Cited by:

    1. Wörz, Markus, 2011. "Unemployment compensation in Germany: Provisions and institutional changes since the 1980s," Discussion Papers, Research Unit: Inequality and Social Integration SP I 2011-206, WZB Berlin Social Science Center.
    2. Jean-Yves Gerlitz, 2018. "Rising In-work Poverty in Times of Activation: Changes in the Distributive Performance of Institutions over Three Decades, Germany 1984–2013," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(3), pages 1109-1129, December.

    More about this item

    Keywords

    Unemployment benefits; net wages; reservation wages; incentives to work;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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