Policy Article
Federal Labour Agency – Cut the rate of contribution! (in German)
Kiel Policy Brief, 104
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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.
