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Development of the social contribution and employment

Macroeconomic effects of rising contribution rates in social security and its financing alternatives

Hundreds of thousands of jobs could be lost in Germany, if social security contributions were to rise more sharply than they have previously done.

A greater increase in contribution rates, in order to stabilise pension levels, for example, would increase wage costs and could therefore weaken the competitiveness of the German economy. At the same time, private consumption would be subdued, primarily due to rising spending in health and social services, while government consumption would grow only slightly.

This is the finding of a survey conducted by Prognos AG for the German Employers' Confederation (BDA) and the Association of the Bavarian economy (vbw). As part of their analysis, economic researchers have predicted the development of the German economy according to different scenarios - depending on how much social contributions rise.

Autor: Dr. Oliver Ehrentraut, Dr. Stefan Moog, Jan Limbers

Kunde: Bundesvereinigung der Deutschen Arbeitgeberverbände e. V. (BDA) Vereinigung der Bayerischen Wirtschaft e. V. (vbw)

Jahr: 2017

Typ: Study

Tags: Germany