Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88763
Authors: 
Boss, Alfred
Year of Publication: 
2013
Series/Report no.: 
Kiel Working Paper 1884
Abstract (Translated): 
It is argued that the German system of supporting low wage income earners by government transfers gives incentives for employers and employees to contract low wages and then to exploit the government. The paper analyses if such incentives do exist. It turns out that this is the case under specific conditions. However, minimum wages are not the adequate remedy to abolish the incentives to exploit the government.
Subjects: 
minimum wages
social assistance
incentives to work
shadow economy
JEL: 
H24
H26
Document Type: 
Working Paper

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