Institut für Arbeitsmarkt- und Berufsforschung

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Old-age security in the low-wage-sector


"The severe problems on the labour market present a hard burden for old-age provisions. There are two aspects in the foreground: employment dynamics, which has been insufficient for a long time, and persistance of unemployment. Such approaches are interesting that would lead to more employment and macerate the hard core of unemployment. This takes us to our topic because subsidies in the low-wage sector have exactly this objective. They should create more employment possibilities in favour of less competitive employees.
But how to assess the promotion schemes or the low-wage sector from an economic point of view? It is useful to approach the answer to this question in different steps. At the beginning we have to analyse the initial problem, i.e. the missing employment dynamics and persistance of unemployment. Then we have to ask why less competitive employees have such serious problems to find a job. Then let us have a look at some possible strategies how to deal with the hard core of unemployment. In this respect, 1 want to stress the possibilities and limits for extending the low-wage sector. Finally, 1 will give a general assessment of promotion schemes for the low-wage sector and explain the consequences for pension provisions." (Author's abstract, IAB-Doku) ((en))


Bibliographical information

Walwei, Ulrich (2003): Old-age security in the low-wage-sector * problems and policy solutions. In: Labour market and pensions. Symposium 2002 of the Research Network on Pension (FNA) on December 5 and 6, 2002 in Dresden, (DRV-Schriften, 43), Frankfurt am Main, pp. 61-74.