tailieunhanh - Economic Reform and the Political Economy of the German Welfare State

“Commute trips” include those traveling between home and work. There is a broad literature of studies concerning the valuation and treatment of time savings for commute trips, which is discussed in Forkenbrock and Weisbrod (2001) and Litman (2008). There is also a line of research (Madden, 1985 and Zax, 1991) which shows that businesses ultimately end up paying a premium to attract and maintain workers in parts of urban areas where transportation costs to employees are higher. This premium is typically placed at half or more of the incremental value of time delay, and can be treated as. | Economic Reform and the Political Economy of the German Welfare State WOLFGANG STREECK and CHRISTINE TRAMPUSCH The central problem of the German economy is the high costs of labour driven up by the burden of funding an extensive welfare state through social insurance contributions that operate as payroll taxes on employment. The study identifies the political causes of the long-term rise in non-wage labour costs. It analyses the reforms of the last decade showing how the multiplicity of veto points in the German political economy has weakened reform initiatives and reduced the prospect for effective reform in the foreseeable future. Contrary to widespread belief the German economy does not suffer from a lack of international Despite the high value of the euro the trade surplus continues to rise. Employment in exposed sectors while declining as elsewhere continues to exceed that in any comparable country indicating that German industry has maintained its outstanding competitive performance. Industrial wages are high but are offset by high and fast-rising Nor does the German economy face particular difficulties with respect to internationalisation. Notwithstanding employment protection co-determination and high wage levels inward foreign investment remains buoyant attracted by an excellent infrastructure a high skill workforce and peaceful labour German firms have substantially expanded their activities abroad in order to compete for market share. During the past decade firms like Siemens BASF BMW Volkswagen Daimler-Benz and Hoechst have evolved into true multinationals. Well into the 1990s the domestic employment effects of outward investment have been generally benevolent. A decline in low-skilled jobs has been compensated by growth in high-skilled employment resulting in an upgrading of the employment structure with only minor losses in the volume of Nevertheless there is a severe and worsening employment .

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