Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189916
Authors: 
Carrillo-Tudela, Carlos
Launov, Andrey
Robin, Jean-Marc
Year of Publication: 
2018
Series/Report no.: 
School of Economics Discussion Papers 1805
Abstract: 
In this paper we investigate the recent fall in unemployment, and the rise in part-time work, labour market participation, inequality and welfare in Germany. Unemployment fell because the Hartz IV reform induced a large fraction of the long-term unemployed to deregister as jobseekers and appear as non-participants. Yet, labour force participation increased because many unregistered-unemployed workers ended up accepting low-paid part-time work that was offered in quantity in absence of a universal minimum wage. A large part of the rise in part-time work was also due to the tax benefits Hartz II introduced to take up a mini-job as secondary employment. This has provided an easy way to top-up labour income staggering under the pressure of wage moderation. The rise in part-time work led to an increase in inequality at the lower end of income distribution. Overall we find that Germany increased welfare as unemployment fell.
Subjects: 
Unemployment
part-time work
mini-jobs
non-participation
multiple job holding
income inequality
Germany
Hartz reforms
JEL: 
J21
J31
J63
J64
Document Type: 
Working Paper
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