1. Social Security Reforms in Germany
Ulrich Becker
Financial Crisis
and
Social Security Reforms
in Germany
Moscow, Higher School of Economics, March 2017

2. Financial Crisis and Labour Market
Ulrich Becker
Introduction
Financial Crisis and Labour Market
Social Policy Reactions to the Financial Crisis
Social Law Reforms before the Financial Crisis
Evaluation and Outlook

3. Financial Crisis and Labour Market Correlations
Ulrich Becker
Financial Crisis and Labour Market
Correlations

4. Financial Crisis and Labour Market Unemployment Rates
Ulrich Becker
Financial Crisis and Labour Market
Unemployment Rates

5. Financial Crisis and Labour Market
Ulrich Becker
Financial Crisis and Labour Market

6. Social Policy Reactions General Remarks
Ulrich Becker
Social Policy Reactions
General Remarks
no changes regarding employment protection (dismissals)
no changes regarding collective agreements

7. Social Policy Reactions Social Insurance
Ulrich Becker
Social Policy Reactions
Social Insurance
Reduction of SHI contributions
Back to the level before the crisis (as in 2008)
Indivdual complementary contribution (‚Kassenindividueller Zusatzbeitrag‘)

8. Social Policy Reactions
Ulrich Becker
Social Policy Reactions

9. Social Policy Reactions Social Insurance
Ulrich Becker
Social Policy Reactions
Social Insurance
Reform of short-time working benefit
Conditions:
regular individual working time shorted for more than 10 %
as a consequence of economic causes or an unavoidable event
shortage for a limited period of time (not permanent!)

10. Social Policy Reactions Social Insurance
Ulrich Becker
Social Policy Reactions
Social Insurance
Reform of short-time working benefit
Calculation:
Regular working hours
net wage differential
Shortage due to crisis
Benefit: 60 or 67 %

11. Social Policy Reactions Social Insurance
Ulrich Becker
Social Policy Reactions
Social Insurance
Reform of short-time working benefit
Lengthening of benefit duration
Simplification of the conditions (prerequisits)
Reimbursement of social insurance contributions

12. Development of short-time work: workers (Source BA)
Ulrich Becker
Development of short-time work: workers (Source BA)

13. Development of short-time work: Workers and Firms
Ulrich Becker
Development of short-time work: Workers and Firms

14. Pre-Crisis Social Law Reforms Old-Age Pension Insurance
Ulrich Becker
Pre-Crisis Social Law Reforms
Old-Age Pension Insurance

15. Pre-Crisis Social Law Reforms Old-Age Pension Insurance
Ulrich Becker
Pre-Crisis Social Law Reforms
Old-Age Pension Insurance
Old age pensions reform act 1992
Invalidity pensions reform act 2000
Amending Law on Retirement Assets 2001
Retirement Assets Law 2001
Contribution Rate Stability Law 2002
Accompanying Budget Law 2003
Pension Insurance Sustainability Law 2004

16. Pre-Crisis Social Law Reforms Old-Age Pension Insurance
Ulrich Becker
Pre-Crisis Social Law Reforms
Old-Age Pension Insurance
Private pensions = second pillar
Rising the pension age
Adaptation of the “general pension value”

17. Pre-Crisis Social Law Reforms Old-Age Pension Insurance
Ulrich Becker
Pre-Crisis Social Law Reforms
Old-Age Pension Insurance

18. Pre-Crisis Social Law Reforms
Ulrich Becker
Pre-Crisis Social Law Reforms

19. Adjustment Formula, § 68 SGB VI
Ulrich Becker
Pre-Crisis Social Law Reforms
Adjustment Formula, § 68 SGB VI
DBE = average amount of gross wage
NQ = net quote share of wage RNQ = net quote share of pension
RVB = rate of contribution to pension insurance
AVA = allotment for private retirement arrangements
RQ = pensioners ratio

20. Financial Crisis and Labour Market Unemployment Benefits
Ulrich Becker
Financial Crisis and Labour Market
Unemployment Benefits
2003/04: so-called ‚Hartz-Reforms‘= statutes on ‚modern services on the labour market‘

21. Financial Crisis and Labour Market Unemployment Benefits
Ulrich Becker
Financial Crisis and Labour Market
Unemployment Benefits

22. Financial Crisis and Labour Market
Ulrich Becker
Financial Crisis and Labour Market
Flexibilisation of the Labour Market
Insurance and Contributions
Introduction of a transition zone (‚Gleitzone‘)
0 – 400 Euro: no contributions
400 – 800 Euro: reductions of contributions
Introduction of working-time accounts
allowed for reduction of working time between 2008 and 2009 (32 %)

23. Hiring or recieving company
Ulrich Becker
Financial Crisis and Labour Market
Flexibilisation of the Labour Market
Facilitation of Temporary Work
Temporary Work (temporary employment agency work)
Hiring or recieving company
Temporary work agency
Labour contract
Work

24. Financial Crisis and Labour Market
Ulrich Becker
Financial Crisis and Labour Market
Flexibilisation of the Labour Market
Facilitation of Temporary Work
Removal of restrictions
Administrative simplification
Principle of equal treatment

25. Ulrich Becker

26. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings
Explanation for the ‚Job-Wunder‘ ?

27. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings
Unemployment Rates

28. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings

29. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings
Explanation for the ‚Job-Wunder‘ ?
A ‚Model‘ for exportation ?

30. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings

31. Evaluation and Outlook Findings
Ulrich Becker
Evaluation and Outlook
Findings

32. Evaluation and Outlook Corrective Measures
Ulrich Becker
Evaluation and Outlook
Corrective Measures
statutory minimum wage in 2015
efectiveness of old-age pension insurances

33. Evaluation and Outlook
Ulrich Becker
Evaluation and Outlook