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Policy Article

Federal Labour Agency – Cut the rate of contribution! (in German)

Authors

  • Boss
  • A.

Publication Date

Key Words

Budget Surplus

Reduction of Contributions

Social Insurance

unemployment insurance

Related Topics

Welfare State

Labor Market

Germany

Economic Policy in Germany

In Germany, the system of unemployment insurance has been in surplus since 2011. The reserves amounted to Euro 11 bn in the end of 2016. Only a small part of the surplus is due to the cyclical stance of the German economy. The surplus mainly is a structural one. The rate of contribution to unemployment insurance should be reduced from 3 to 2.7 percent soon, as proposed by the author Alfred Boss. This would avoid an increase of the overall rate of contributions to social security in 2017. The increase of employment would be fostered.

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