Reformen zur Entlastung geringer Einkommen und ihre Auswirkungen auf die Beschäftigung

Translated title of the contribution: The Long-Term Effects of Reforming Social Security to Relieve Low-Income Households

Tom Krebs*, Martin Scheffel*, Manuela Barišić*, Valentina Sara Consiglio*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review


In this paper, we use a macroeconomic model to evaluate two reform proposals that, first, abolish the exemption from social security contributions for marginal employment (“mini jobs”) and, second, reduce social security contributions for low-income earners. Specifically, the first reform proposal lowers social security contributions for individuals with a gross income of less than 1,300 euro per month. The second reform proposal extends the relief to individuals who earn less than 1,800 euro per month. The main findings show that the second reform proposal leads to substantial relief for low income individuals and incentivises unemployed, marginal employed and parttime employed households to increase their labour supply. While there are already positive shortterm effects on employment, the second reform proposal increases longterm employment by 68,900 full-time equivalent units and the ensuing positive effect on employment and productivity is beneficial for the economy, the society, and for fiscal balances.

Translated title of the contributionThe Long-Term Effects of Reforming Social Security to Relieve Low-Income Households
Original languageGerman
Peer-reviewed scientific journalWirtschaftsdienst
Issue number10
Pages (from-to)809-813
Number of pages5
Publication statusPublished - 10.2021
Externally publishedYes
MoE publication typeA1 Journal article - refereed

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