Wachstumsbooster Arbeitsmarkt
Germany faces substantial economic challenges in the years ahead. An
increase in labour supply could boost growth and increase government
revenues. In this paper, we use survey data from the Socio-Economic
panel to quantify the magnitude of the potential workforce and find that
the number of employed persons could be increased by up to 4.7 million
persons. If additionally, the employment rate of the over-65-year-olds
was increased to the level of Sweden, this number increases to 5.5
million. We then use a microsimulation model to calculate the fiscal
effects of various scenarios with increased labour supply. In the most
optimistic scenario, where additionally to the increase in employment by
5.5 million, employees who would like to work more hours increase their
work hours, government revenue would increase by 169 billion Euro per
year and GDP would increase by about 15 percent.
Publications
Project start:
01. May 2024
Project end:
31. October 2024
Project management:
Dr. Robin Jessen
Project staff:
Niklas Isaak,
Eliana Coschignano
Funding:
Friedrich-Naumann-Stiftung für die Freiheit