Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141334
Authors: 
Berthold, Norbert
Coban, Mustafa
Year of Publication: 
2014
Citation: 
[Journal:] Wirtschaftsdienst [ISSN:] 1613-978X [Publisher:] Springer [Place:] Heidelberg [Volume:] 94 [Year:] 2014 [Issue:] 2 [Pages:] 118-124
Abstract: 
Lohnsubventionen und Kombilöhne sind ein fester Bestandteil des arbeitsmarktpolitischen Instrumentariums industrieller Länder. Sie haben das Ziel, Arbeitslose zu motivieren, auch Beschäftigungen mit geringerem Marktlohn anzunehmen sowie den Lebensstandard der Geförderten zu erhöhen und damit das Armutsrisiko zu senken. An diesen beiden Zielen setzen auch der US-amerikanische Earned Income Tax Credit und das deutsche Arbeitslosengeld II an. Die Autoren zeigen, dass das US-amerikanische Modell in beiden Evaluationsfragen ein besseres Ergebnis aufweist.
Abstract (Translated): 
'Make work pay' strategies are an integral part of labour market policy instruments in developed countries. There are two considerations behind these measures. Firstly, subsidizing employment at the bottom of the income distribution should motivate the unemployed to accept jobs with lower market wages. Secondly, the wage supplement should increase the living standards of the recipients and reduce the risk of poverty. The U.S. EITC and the German UB II based on these two goals. Our paper begins with an overview of these two wage top-up schemes. This is followed by an empirical evaluation of the two instruments regarding their capacity to prevent in-work poverty and to strengthen labour market participation. The EITC obtains better results compared to UB II in both regards.
JEL: 
H24
I38
J22
Persistent Identifier of the first edition: 
Document Type: 
Article

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