Authors: Fertig, Michael1; Kluve, Jochen1; Schmidt, Christoph M.1
Source: Perspektiven der Wirtschaftspolitik, Volume 7, Number 2, May 2006 , pp. 227-255(29)
Publisher: Blackwell Publishing
Abstract:
: The recent reform of jobs with reduced social security contributions (the so-called Minijobs) was associated with the expectation that such jobs could serve as a bridge into regular employment for unemployed workers. However, recent experiences with the reform cast substantial doubts on the potential of Minijobs in this regard. Hence, this article develops a proposal for an easily implementable, generous and temporary extension of the current regulation to provide an incentive for unemployed workers to take up such a Minijob. Our proposal is supplemented by an assessment of the expected labor market impact and a monetary cost-benefit analysis.Document Type: Research article
DOI: 10.1111/j.1465-6493.2006.00207.x
Affiliations: 1: RWI-Essen, IZA-Bonn, Ruhr-Universität Bochum und CEPR-London
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