Knabe, Andreas; Schöb, Ronnie - 2008
issues for the exemplary case of Germany that suffers from high unemployment among low-skilled workers and rising wage … burden by about EUR 4 billion per year, while poor households’ income rises only by EUR 1.1 billion per year. With pure wage … subsidies, the government can ensure more favorable employment and income effects. Combining a minimum wage with a wage subsidy …