The paper reviews national and international experiences with different combinations of in-work benefits, subsidized employment, statutory minimum wages and implicit minimum wages defined by social assistance provisions. It calls for a cautious approach regarding the introduction of additional...

In the debate on in-work benefits in Germany it is often overlooked that such subsidies may only be effective if basic minimum income is remarkably decreased for those who are employable. However, proposals following this principle will hardly achieve political consensus as can be derived from...