Combined wages

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The combined wage represents state transfers to employees that are linked to taking up or exercising dependent employment . Basically, it is a question of wage subsidies .

intention

Combined wages are based on the observation that workers with low qualifications in particular do not get a chance on the labor market because their wages are higher than their productivity and a further decrease in their income is prevented by state transfer payments or minimum wages or is undesirable for social reasons. Combined wages exist in Ireland , Great Britain and the United States , for example .

to form

Combined wages for employees

Combined wages are intended to enable the unemployed to accept work whose wages are below or relatively close to the level of state transfer payments. The aim is to create a job offer that has not yet been served or has not even been created due to the expected wage level (see entry low wages ). At the same time, there should be a redistribution from higher to lower income groups.

Grants to employers

A similar effect is expected from wage subsidies that are paid to companies that employ workers with certain hiring obstacles. An effect in the opposite direction is expected. Due to the lower costs for the employer, on the one hand the demand for work of the supported group of people and on the other hand their wages increase.

Temporary wage subsidies

Temporary wage subsidies such as the Hamburg model , however, have a slightly different intention . The aim here is to absorb the costs of integration into work, especially for the long-term unemployed and the low-skilled. The basic idea is that the training costs are particularly high for the above-mentioned professional groups because they are not very productive in the first few months. That is why half of the subsidy is paid to the employer in the Hamburg model. After a certain period of time - it is hoped - the workers are more productive and can thus on the one hand earn higher wages and on the other hand are still more attractive as employees.

Situation in Germany

Current discussions

In Germany, a combined wage was discussed in the form of a lower crediting of additional earnings towards unemployment benefit or unemployment benefit II . At the end of 2014 there were around 1.3 million recipients (so-called top - ups ) of supplementary ALG II in addition to their low earned income, which allows them to remain in need within the meaning of SGB ​​II , provided that no other income or assets are available. In contrast to ALG I (additional earnings only less than 15 hours per week), there is no hourly limit on “additional earnings” with ALG II according to Section 30 SGB ​​II. Additional earnings by the unemployed are intended to reduce unemployment benefits less than before. This is hoped for a gradual return to professional life. That would mean that in the future many employees could receive state subsidies. This would effectively create a combined wage. In addition, the entry allowance can also be granted to the long-term unemployed for a maximum period of 24 months when taking up low-paid jobs subject to social insurance. Some employment agencies already practice combined wage models within the framework of free funding . With the passive-active transfer , the Diakonie has developed a financing model that is successfully used in Baden-Württemberg as part of the “Good and Safe Work” program.

Combined wages for teachers

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See talk page.

As a result of the federalism reform in 2007, collective bargaining for public sector employees in Germany was transferred from the federal government to the federal states. With the accompanying introduction of the TV-L (collective bargaining agreement between the states), salaries in the public sector were reduced by 30% to 50%. According to a survey based on surveys by the Hamburg institute Statista, which the magazine Stern published in 2010, the real salaries of German primary, secondary, secondary and special school teachers fell by 21% between 1990 and 2008. The reduction in collectively agreed wages has resulted in salaried teachers receiving a combined wage in cases where they are the sole breadwinner and head of the household and have to look after two or more children in the household.

Advantages and disadvantages

advantages

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Depending on the respective model, there may be the following reasons and advantages, including secondary effects:

  • Help to (re) enter, especially for long-term unemployed who are far from work, d. In other words, if the training is positive, takeover is tempting.
  • Greater gap between ALG I or ALG II and the remuneration for work. The greater the gap, the more interesting it becomes for previously unemployed people to take on a low-wage job. In other words: ALG is no longer in competition with the low-wage sector.
  • There are important psychological effects and impulses for the combined wage employee, i. That is, his self-confidence and knowledge increase as he is reintegrated into society.
  • The combi-wage employee expands his horizon of experience and knowledge, so-called "learning by doing".
  • economic benefit according to the motto: "Better to subsidize work than subsidize unemployment." A higher gross national product is created in Germany for almost the same amount of money.
  • Direct relief of the state coffers through combined wage employees who do unfinished or no longer affordable (i.e. really additional) tasks
  • Employment in previously voluntary or general-benefit activities improve social interaction and improve the quality of the environment.
  • Participating companies lower unit costs, i. that is, they become more productive and more competitive.
  • Fixed-term combi-wages are a good means in times of economic downturn as a positive signal for breaking downward spirals.
  • Less undeclared work: People have less time for undeclared work when they (have to) accept a combined wage job. In addition, undeclared work becomes less interesting for potential clients if combined wages reduce the prices for regular work.
  • Additional tax income through secondary effects: If z. If, for example, combi-wage employees switch to permanent employment, German companies sell more (and become more competitive) and there is less illegal work, the treasury benefits.
  • Increase in regular employment through secondary effects.

Many of the reasons mentioned here also apply to any regular job, of course. In case of doubt, preference should be given to the regular workplace. It is therefore important that there are additional combi-wage jobs. CDU general secretary Ronald Pofalla said: "The decisive criterion for eligibility must be the low hourly wages, not the monthly salary." Should be promoted worker, not the employer to possible windfall gains to minimize from the outset.

disadvantage

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The following points are often criticized in the combination wage models discussed so far and the reasons for them:

  • Many of the arguments in favor of a combination wage model apply to practically every job and are therefore not specific justifications for a combination wage model.
  • Many of the economic advantages presented are economically counterproductive, since they do not take into account the possible and therefore foreseeable abuse.
  • Bureaucratic costs when implementing the combination wage models are not sufficiently taken into account.
  • This inevitably results in market distortions between companies with and without combined wage employees, which consequently makes it necessary to introduce combined wages across the board. This sets a trend towards combined wages in motion - also internationally.
  • The indirect market displacement of private companies through state-subsidized work is criticized as economically counterproductive. One example is the use of 1 euro jobbers at the green space office instead of local horticultural companies ( revolving door effect ).
  • Elimination of the performance principle, because lump sums are paid instead of performance or quality, so that the combi-wage employee has no financial incentive to work well.
  • Deadweight for companies without lowering prices for customers as with the corporate tax reforms of July 2000.
  • Downward spiral of the entire wage level through direct competition of combined wages with regular jobs.
  • Secondary financing problems of social insurance (health insurance, pension insurance, unemployment insurance, etc.) that were not taken into account due to the expansion of low contribution payments for combined wages and especially when wage reduction effects are triggered.
  • Only permanent co-payments permanently lower the wage level and make the workplace internationally competitive. However, long-term co-payments cannot be financed.
  • Other countries will follow suit with combined wage models, so that some of the advantages will be canceled out, but the costs will persist.
  • Little motivation for employees to work in a profession that is subject to social insurance and is paid less than the combined wage.

Criticism of combi-wage models comes from trade unions and the SPD as well as from economists and business associations. While the unions see a weakening of their collective bargaining policy , economists and employers' associations fear incalculable costs. The Deputy General Manager of the Federal Association of German Employers' Associations (BDA), Peter Clever , said: "A nationwide wage subsidy is unaffordable and senseless". Joachim Poß (SPD) spoke of a "state invitation to wage depressions" and feared deadweight effects. There is no money available in public budgets for wage subsidies.

Alternatives

A negative income tax or a citizen's allowance or an unconditional basic income are discussed as alternatives to a combined wage .

The US EITC, which is similar to a combo wage, is considered to have been tried and tested there - it is a negative income tax limited to the wages of employees and freelancers, with the preference of families with children in order to raise them above the poverty line.

See also

Individual evidence

  1. ↑ The top-ups in the Hartz IV system
  2. ^ Spiegel Online January 6, 2010
  3. ↑ Michael Vogel: Teacher: More work, less money. monster.de, August 27
  4. ↑ a b "Harsh criticism of combined wages" (tagesschau.de archive), Tagesschau.de , January 3, 2006.

literature

Web links