Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the Hartz IVʺ reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal...

Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the “Hartz IV"" reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal...