1 / 33

Financial Crisis and Social Security Reforms in Germany: Impact and Responses

Explore how Germany navigated the financial crisis through social security reforms and labor market changes. Analyze pre-crisis and post-crisis policy shifts.

elizabethporter
Download Presentation

Financial Crisis and Social Security Reforms in Germany: Impact and Responses

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ulrich Becker Financial Crisis and Social Security Reforms in Germany Moscow, Higher School of Economics, March 2017

  2. Ulrich Becker • Introduction • Financial Crisis and Labour Market • Social Policy Reactions to the Financial Crisis • Social Law Reforms before the Financial Crisis • Evaluation and Outlook

  3. Ulrich Becker • Financial Crisis and Labour Market • Correlations

  4. Ulrich Becker • Financial Crisis and Labour Market • Unemployment Rates

  5. Ulrich Becker • Financial Crisis and Labour Market

  6. Ulrich Becker • Social Policy Reactions • General Remarks • no changes regarding employment protection (dismissals) • no changes regarding collective agreements

  7. Ulrich Becker • Social Policy Reactions • Social Insurance Reduction of SHI contributions • Back to the level before the crisis (as in 2008) • Indivdual complementary contribution (‚Kassenindividueller Zusatzbeitrag‘)

  8. Ulrich Becker • Social Policy Reactions

  9. Ulrich Becker • Social Policy Reactions • Social Insurance Reform of short-time working benefit • Conditions: regular individual working time shorted for more than 10 % as a consequence of economic causes or an unavoidable event shortage for a limited period of time (not permanent!)

  10. Ulrich Becker • Social Policy Reactions • Social Insurance Reform of short-time working benefit • Calculation: Regular working hours net wage differential Shortage due to crisis Benefit: 60 or 67 %

  11. Ulrich Becker • Social Policy Reactions • Social Insurance Reform of short-time working benefit • Lengthening of benefit duration • Simplification of the conditions (prerequisits) • Reimbursement of social insurance contributions

  12. Ulrich Becker Development of short-time work: workers (Source BA)

  13. Ulrich Becker Development of short-time work: Workers and Firms

  14. Ulrich Becker • Pre-Crisis Social Law Reforms • Old-Age Pension Insurance

  15. Ulrich Becker • Pre-Crisis Social Law Reforms • Old-Age Pension Insurance Old age pensions reform act 1992 Invalidity pensions reform act 2000 Amending Law on Retirement Assets 2001 Retirement Assets Law 2001 Contribution Rate Stability Law 2002 Accompanying Budget Law 2003 Pension Insurance Sustainability Law 2004

  16. Ulrich Becker • Pre-Crisis Social Law Reforms • Old-Age Pension Insurance • Private pensions = second pillar • Rising the pension age • Adaptation of the “general pension value”

  17. Ulrich Becker • Pre-Crisis Social Law Reforms • Old-Age Pension Insurance

  18. Ulrich Becker • Pre-Crisis Social Law Reforms

  19. Ulrich Becker • Pre-Crisis Social Law Reforms Adjustment Formula, § 68 SGB VI 1992 - 1999 2001 - 2004 DBE = average amount of gross wage NQ = net quote share of wage RNQ = net quote share of pension RVB = rate of contribution to pension insurance AVA = allotment for private retirement arrangements RQ = pensioners ratio

  20. Ulrich Becker • Financial Crisis and Labour Market • Unemployment Benefits • 2003/04: so-called ‚Hartz-Reforms‘= 4 statutes on ‚modern services on the labour market‘

  21. Ulrich Becker • Financial Crisis and Labour Market • Unemployment Benefits

  22. Ulrich Becker • Financial Crisis and Labour Market • Flexibilisation of the Labour Market Insurance and Contributions • Introduction of a transition zone (‚Gleitzone‘) • 0 – 400 Euro: no contributions • 400 – 800 Euro: reductions of contributions • Introduction of working-time accounts • allowed for reduction of working time between 2008 and 2009 (32 %)

  23. Ulrich Becker • Financial Crisis and Labour Market • Flexibilisation of the Labour Market Facilitation of Temporary Work Temporary Work (temporary employment agency work) Hiring or recieving company Temporary work agency Labour contract Work

  24. Ulrich Becker • Financial Crisis and Labour Market • Flexibilisation of the Labour Market Facilitation of Temporary Work • Removal of restrictions • Administrative simplification • Principle of equal treatment

  25. Ulrich Becker

  26. Ulrich Becker • Evaluation and Outlook • Findings • Explanation for the ‚Job-Wunder‘ ?

  27. Ulrich Becker • Evaluation and Outlook • Findings Unemployment Rates

  28. Ulrich Becker • Evaluation and Outlook • Findings

  29. Ulrich Becker • Evaluation and Outlook • Findings • Explanation for the ‚Job-Wunder‘ ? • A ‚Model‘ for exportation ?

  30. Ulrich Becker • Evaluation and Outlook • Findings

  31. Ulrich Becker • Evaluation and Outlook • Findings

  32. Ulrich Becker • Evaluation and Outlook • Corrective Measures • statutory minimum wage in 2015 • efectiveness of old-age pension insurances

  33. Ulrich Becker • Evaluation and Outlook

More Related