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, preventing employment at low wages. This creates substantial unemployment of the low-skilled. This paper discusses the …The German system of generous subsistence payments to the unemployed generates disincentives for labor supply …
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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...
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