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 the earned income tax would even be an option for the whole of Europe. Since companies act on a worldwide market, some employment problems extend the boarders of nation states. In order to answer this question, the actual politics in this field of the EU will shortly be described. Social policy was historically never one of the most harmonized fields. But with the Maastricht and especially with the Lisbon strategy member states agreed to certain measures in this field. The question is how far this arrangement go, and whether or not an earned income tax is realistic in the near future for low skill workers.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Unemployment in Germany-Statistic
- Low skill workers
- Situation of low skill workers in Germany
- Social benefits in Germany
- Hartz IV Politics
- Conclusion of the German job market
- Unemployment in Great Britain
- Situation of low skill workers in Great Britain
- Earned income Tax
- Comparison between Germany and Great Britain
- European social policy
- Recent measures
- Earned income tax on EU level?
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates the challenges of integrating low-skilled workers into the labor market, focusing specifically on the contrasting situations in Germany and Great Britain. The paper aims to explore the effectiveness of the earned income tax in Great Britain, and whether it could be implemented on an EU level to address the issue of low-skill unemployment across member states. The author will discuss the factors contributing to the disparity in success rates between the two countries, analyzing the role of social policy, education systems, and global competition.
- Low-skill unemployment in Germany and Great Britain
- Effectiveness of the earned income tax in Great Britain
- Feasibility of implementing an earned income tax on an EU level
- Impact of social policy and education systems on low-skill employment
- Global competition and its influence on low-skill labor markets
Zusammenfassung der Kapitel (Chapter Summaries)
- Abstract: The abstract introduces the paper's focus on low-skill unemployment in the EU, particularly contrasting Germany and Great Britain. It highlights the success of the earned income tax in Great Britain and poses the question of its potential EU-wide implementation.
- Unemployment in Germany-Statistic: This chapter explores the high unemployment rate in Germany, with particular attention to the challenges faced by low-skilled workers. It discusses the impact of the Hartz IV reforms and examines the role of long-term unemployment.
- Low skill workers: This section delves into the challenges faced by low-skilled workers in the globalized economy. It examines the impact of globalization on labor-intensive industries and discusses the importance of education and training for improving employment prospects.
- Situation of low skill workers in Germany: This chapter provides a detailed look at the situation of low-skilled workers in Germany, highlighting the challenges they face in the job market. It analyzes the German education system and its role in creating a divide in skill levels.
- Unemployment in Great Britain: This chapter focuses on the unemployment situation in Great Britain, highlighting the success of the earned income tax program in encouraging low-skilled workers to enter the labor market.
- European social policy: This chapter explores recent measures implemented by the EU in the area of social policy, including the Lisbon strategy. It examines the potential for implementing an earned income tax on an EU level and discusses the challenges associated with such a move.
Schlüsselwörter (Keywords)
The key focus of this paper lies in the analysis of low-skill unemployment in Germany and Great Britain. It explores the impact of global competition, social policy, and education systems on the employment prospects of low-skilled workers. The earned income tax, as a successful program in Great Britain, serves as a key point of interest, with the paper investigating its potential for implementation at an EU level. Key terms include: low-skill unemployment, earned income tax, global competition, social policy, education systems, and labor market integration.
- Citar trabajo
- Daniel Schmidt (Autor), 2007, Unemployment of low-skill workers in Germany - Would an earned income tax implemented on the EU level help to strengthen their position?, Múnich, GRIN Verlag, https://www.grin.com/document/91673
