Economic and Social Policy

Tax policy

The state gives up billions

As a result of the tax and social reforms introduced since 1999 the German state has had to make do with around €71 billion a year less. Taxes on wealth and income from capital have been cut much more than taxes on income from work. more...

Labour market

Jobs miracle is not a result of Agenda 2010

Employment in Germany has increased in the last few years. Is this evidence of the effectiveness of Agenda 2010 - the major labour market reforms announced in 2003? No, according to the IMK; an analysis of the data provides no indication that this is the case. more...

Distribution

Equality: a benefit for everyone

Redistribution produces contentment: a study shows that people in egalitarian societies worry less about status. more...

Integration

Success for migrant children: what France and Germany can do

In France and Germany, the educational and professional development of migrants is often uncertain. A comparative study shows that the educational systems in the two countries have differing strengths and weaknesses. It also looks at what contributes to a successful start in working life. more...

Pensions

Other countries compensate for low pay

Someone on low pay in Germany will only get a poor pension and is scarcely in a position to make provision for old age, either individually or through a company pension. The Netherlands and France provide better security for low earners. more...

Gender equality

Clear rules diminish the gap

Gender equality at the work place has hardly progressed in Germany in the past decade. In countries such as the USA, France or Sweden working women are in a better position thanks to a variety of very different regulatory frameworks. more...

Labour market

Temporary agency work: neighbours have better regulations

Thousands of temporary agency workers lost their jobs in 2009. However, scientists expect the temporary agency work boom to continue in the next upswing. They recommend an improvement of working conditions following the example of other countries. more...

Taxes

Multinational companies appreciate the welfare state

A recent study shows that lower company taxes do not necessarily make a country attractive for foreign investors. Government social spending is also important, as it helps promote a good social climate. more...

Social security

Risk of poverty grows for young and old

Growing inequality in earnings poses problems for the welfare states of many European countries. Germany faces an increased risk of future pensioner poverty among other challenges. more...

Plant relocation

Low hurdles in Germany

Closing a plant in Germany costs less and takes less time than in other European countries. A specially commissioned expert report shows that in France and the Netherlands the state places greater obstacles in the way of mass redundancies. more...

Deregulation

Labour market reform: no new jobs

As yet there has been little academic research on whether labour market deregulation produces more jobs and growth in the short term. A new study closes this gap and shows that reforms in the labour market do not lead to reduced unemployment. more...

Equality

'Father quotas' work - the freedom to chose doesn't

If the aim is for a fairer division of paid and family work between men and women, it's not enough to rely on parents' right to choose. On the contrary, the experience of the Nordic countries shows that childcare payments introduced under this slogan have promoted traditional roles. more...

Contentment

The protection of the welfare state helps happiness to flourish

Contentment isn't a private issue. Europeans feel particularly at ease when limits are placed on social inequality and they are protected by social safeguards. more...

Labour market

Social protection for the self-employed

There are increasing numbers of people in Europe who work for themselves. However, in Germany this new group of the self-employed generally falls through the social security net. more...

Labour market

Flexicurity: it's in the balance

Flexible labour markets and security for the employees at the same time - the flexicurity model is attempting a difficult juggling act. more...

Euro zone

Way out of the debt trap

The declared goals of the countries of the Euro zone are stable public finances and strong economic growth. However, analysis by the economic institute IMK has found that under the rules of the Stability and Growth Pact, these goals are unachievable. The Institute calls for a fundamental reform of the Pact. more...

Economic Policy

The secret of British success: spending in the crisis

The UK economy is growing; unemployment is far lower than in Germany. What are the British doing right? Academics from the Universities of Göttingen and Hamburg pick apart the standard myth that it has been deregulation and flexibility that have brought growth and welfare. Much more decisive, they find, has been the right mix of monetary and financial policies. more...

Inflation

The state drives up prices

Despite long years in the economic doldrums and mass unemployment, the inflation rate in the Euro zone remains high. Is this the fault of rigid labour markets and tight product controls? No, says the IMK Macro Economic Policy Institute: increases in public charges and changes in indirect taxes are keeping price rises above the European Central Bank's acceptable two per cent limit. more...

Public Services

Lots of state, lots of competition

Railways, telecommunications and water supply all are supposed to be more efficient, cheaper and more reliable when they are no longer provided by the state. That is why the UK has radically privatised large parts of its public sector, although with only moderate success. Sweden, on the other hand, has gone for more competition - without selling state-owned companies. The result: high quality and low prices. more...