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Minimum Wage: Many Entitled Employees in Germany Still Do Not Receive It

There has been a universal statutory minimum wage in Germany for a good four years, but many employees still do not receive it. This is the finding of new calculations based on the Socio-Economic Panel (SOEP), which have updated noncompliance with the minimum wage for 2017. Even conservative calculations indicate that around 1.3 million people who are entitled to the minimum wage receive a lower wage ...

Job Matching in Connected Regional and Occupational Labour Markets

Job mobility equilibrates disparities in local labour markets and influences the job-matching efficiency. We specify a matching function with regional, occupational and combined regional–occupational spillovers of unemployed and vacancies. To construct these spillovers, we use information on regional proximities and occupational similarities. Based on novel German data on new hires, the unemployed ...

Economic Aspects of Subjective Attitudes towards the German Minimum Wage Reform

Despite some skepticism among experts about the effects of a minimum wage, there is remarkably widespread public support for such policies. Using representative survey data from 2015 and 2016, we investigate the subjective attitudes driving public support for Germany’s recent minimum wage reform. We find that socio-economic characteristics and political orientations explain a minor part of the variation ...

A Tale of Two Countries - A Comparison of Unemployment Spells in the United Kingdom and Germany

On the Economics and Biology of Trust

In recent years, many social scientists have claimed that trust plays an important role in economic and social transactions. Despite its proposed importance, the measurement and the definition of trust seem to be not fully settled, and the identification of the exact role of trust in economic interactions has proven to be elusive. It is still not clear whether trust is just an epiphenomenon of good ...

A Nation-Wide Laboratory - Examining trust and trustworthiness by integrating behavioral experiments into representative surveys

Private Retirement Savings in Germany: The Structure of Tax Incentives and Annuitization

Risk Sharing and Efficiency Implications of Progressive Pension Arrangements

This paper aims to quantify the welfare effects of progressive pension arrangements in Germany. Starting from a purely contribution-related benefit system, we introduce basic allowances for contributions and a flat benefit fraction. Since our overlapping-generations model takes into account variable labor supply, borrowing constraints as well as stochastic income risk, we can compare the labor supply, ...

Social security with rational and hyperbolic consumers

Flexible Employment as a Unidirectional Career? Results from Field Experiments

Although the number of flexible workers is constantly growing, little is known about career paths built up on flexible employment. In this article, we investigate the chances of former flexible workers to be employed in a permanent full-time position. In two field experiments, we asked for employers’ evaluation of applicants with a flexible employment history. Results indicate that former part-time ...