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Journal Article

Economic Reform and the Political Economy of the German Welfare State

MPS-Authors
/persons/resource/persons41304

Streeck,  Wolfgang
Regimewettbewerb und Integration in den industriellen Beziehungen, MPI for the Study of Societies, Max Planck Society;

/persons/resource/persons41312

Trampusch,  Christine
Institutioneller Wandel im gegenwärtigen Kapitalismus, MPI for the Study of Societies, Max Planck Society;

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GP_14_2005_Streeck.pdf
(Any fulltext), 537KB

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Citation

Streeck, W., & Trampusch, C. (2005). Economic Reform and the Political Economy of the German Welfare State. German Politics, 14(2), 174-195. doi:10.1080/09644000500154490.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0012-4EA4-B
Abstract
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.