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We study three budget-neutral reforms of the German tax and transfer system designed to improve work incentives for people with low incomes: a feasible flat tax reform that provides a basic income which is equal to the current level of the means tested unemployment benefit, and two alternative...
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In view of rising wage inequality and increasing poverty, the introduction of a legal minimum wage has recently become … an important policy issue in Germany. We analyze the distributional effects of the introduction of a nationwide legal … ineffective in reducing poverty, even if it led to a substantial increase in hourly wages at the bottom of the wage distribution …
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