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| Author: | Scharpf, F. W. |
| Title: | Fuer eine Subventionierung niedriger Erwerbseinkommen = Arguments in favour of subsidizing low wages |
| Journal: | Wirtschaftsdienst
1994 : MAR, VOL. 74:3. p.111-114 |
| Index terms: | WAGE DETERMINATION UNEMPLOYMENT SOCIAL POLICY SUBSIDIES INCOMES POLICY GERMANY |
| Language: | ger |
| Abstract: | The concept of the recently proposed negative income tax is criticized. According to this concept allowances for children, upbringing, education, housing , costs of living, unemplyment etc. should be drawn together and concentrated in the form of tax-free personal income. Arguments are presented against the negative income tax: it will lead to an enormous decrease in the tax revenues of the state and an increase in the number of the entitled. Withdrawal from generally accepted alternative social roles /housewife, pensioner, student/ would occur. Favourable impacts on employment can be excluded on the ground that in the FRG a low wage labour market - contrary to the USA - is socially unacceptable. Instead of this, subsidizing especially low wages is suggested. |
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