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Unemployment of low-skill workers in Germany - Would an earned income tax implemented on the EU level help to strengthen their position? (Paperback)
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Unemployment of low-skill workers in Germany - Would an earned income tax implemented on the EU level help to strengthen their position? (Paperback)
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Seminar paper from the year 2007 in the subject Politics -
International Politics - Topic: Globalization, Political Economics,
grade: 1,0, University of Twente (Political Institute ), course:
European Economic Governance, 25 entries in the bibliography,
language: English, abstract: Unemployment is a problem for every
member state in the EU, even though the numbers of unemployed
people vary from country to country. Especially for the countries
which are grouped into the continental system (France or Germany)
the problem is severe. On the other hand other countries have
improved their markets and now have less unemployment than in the
1980th, for example Great Britain or Spain. However, in every
country one group is seen as especially problematic and those are
the low skilled workers. Persons without good education or
professional training run a high risk of becoming unemployed.
Compared to academics in Germany their number unemployment is four
times as high in this group. This is partly due to the fact that
the global competition has become stronger during the last years.
Since the wages in other countries are lower this leads to cheaper
production cost for the companies in those places. Especially for
labour intensive industries this is a problem, and those industries
normally provide the jobs for low skill workers. Thus all countries
have taken measures to integrate this group better into the world
market. The leading question for this paper is why Great Britain
has been more successful in integrating this group in the work
market than for example Germany. One program that will be
introduced is an earned income tax. This means that low skill
workers become additional money, for the case that they have a job
that pays only little money. With this program the British
government motivated people to take jobs, even though the hourly
wage is not high. This program worked well and got extended in
April 2003. In the end of the paper the question will get discussed
if
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