Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3465
Authors: 
Boss, Alfred
Elendner, Thomas
Year of Publication: 
2005
Series/Report no.: 
Kieler Arbeitspapiere 1237
Abstract: 
Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the ?Hartz IV? reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal (explicit and implicit) tax rates for most groups of the labor force remain high. It is concluded that employment probably will not be affected significantly by that part of the reform which aims at strengthening the incentives to work. Other elements of ?Hartz IV? are only touched on.
Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the "Hartz IV" reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal (explicit and implicit) tax rates for most groups of the labor force remain high. It is concluded that employment probably will not be affected significantly by that part of the reform which aims at strengthening the incentives to work. Other elements of "Hartz IV" are only touched on.
Subjects: 
Income tax rates
Contributions to social security
Unemployment benefits
Implicit tax rates
Incentives to work
JEL: 
H24
Document Type: 
Working Paper

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