Ralf Einert

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THE WORLD SPIRIT - Part 2:

Studies of Economic Change

Measure 1: Employees and employers share to the social insurance

1a): Employees share to the social/national insurance

Description:

The employees share to the social/national insurance depends on the hours worked
(the less the weekly hours worked, the less the percentage of the NI)

Goals:

1. Incentive for employees to work less hours a week and therefore
2. Incentive for employers to increase the number of employees
3. Increase of the labour force participation

Conflicts:

1. Disadvantage for research-intensive companies
2. Individual wish to maximize the income

Problems:

1. Proof and documentation of the hours worked
2. Exception for research-intensive companies and non-profit organisations


1b): Employers share to the social/national insurance

Description:

The employers share to the social/national insurance depends on the average turnover for each employee (the less the turnover, the less the percentage of the NI)

Goals:

1. Incentive to increase of the number of employed (by reducing the hours worked)
2. Increase of the competitiveness of labour intensive companies
3. Increase of the labour force participation

Conflicts:

1. Reducing the incentives to increase the labour productivity and therefore
2. indirect subsidiaries for unproductive companies

Problems:

1. Possibility to manipulate the company figures
2. Exceptions for banks, insurances, and capital companies?