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This study analyzes the effects of right-wing extremism on the well-being of immigrants based on data from the German Socio-Economic Panel (SOEP) for the years 1984 to 2006 merged with state-level information on election outcomes. The results show that the life satisfaction of immigrants is significantly reduced if right-wing extremism in the native population increases. Moreover, the life satisfaction of highly educated immigrants is affected more strongly than that of low-skilled immigrants. This supports the view that policies aimed at making immigration more attractive to the high-skilled have to include measures that reduce xenophobic attitudes in the native population.

We reassess the "scarringʺ hypothesis by Clark et al. (2001), which states that unemployment experienced in the past reduces a person's current life satisfaction even after the person has become reemployed. Our results suggest that the scar from past unemployment operates via worsened expectations of becoming unemployed in the future, and that it is future insecurity that makes people unhappy. Hence, the terminology should be altered by one letter: past unemployment "scarsʺ because it "scaresʺ.

PurposeThis paper aims to examine the effects of marginal and general wage subsidies on employment and income distribution.Design/methodology/approachThe paper constructs a theoretical, partial‐equilibrium model of an economy in which a large number of competitive firms produce a homogeneous output good. Involuntary unemployment arises from a too high and rigid wage. By conducting comparative static analyses, the paper evaluates the impact of general and marginal wage subsidies on employment and incomes.FindingsThe paper shows that a marginal wage subsidy is a fiscally more efficient instrument for employment creation than a general wage subsidy because it resembles a combination of a general wage subsidy with a profit tax. These favorable effects persist even if between‐firm displacement effects are taken into account.Research limitations/implicationsIn line with most of the literature on marginal employment subsidies, attention is restricted to a partial‐equilibrium analysis in which the wage is assumed to be fixed. This helps to sharpen the focus on between‐firm competition, but is perhaps implausible when analyzing a general‐equilibrium setting. The inclusion of endogenous wage setting is bound to provide an interesting area for future research.Practical implicationsIf politicians want to implement a wage subsidy scheme that has to be self‐financing, marginal wage subsidies are an effective policy instrument for employment creation. Its downside is an inefficient allocation of labor among firms, because some firms become larger than is necessary.Originality/valueThe paper provides a novel approach to model the between‐firm displacement effects of marginal wage subsidies and derives policy conclusions.

"Um höhere Arbeitsanreize für Hilfeempfänger zu schaffen, wurden bei der Zusammenlegung von Arbeitslosen- und Sozialhilfe zum Arbeitslosengeld II durch das Hartz IV-Gesetz auch die Anrechnungsregeln für Erwerbseinkommen verändert. Während dieses Ziel für weite Einkommensbereiche erfüllt wird und sich Mehrarbeit lohnt, entstehen entgegen der ursprünglichen Intention vor allem bei großen Bedarfsgemeinschaften gleichzeitig Einkommensbereiche, in denen der durch zusätzliche Arbeitsanstrengungen beim Hilfeempfänger verbleibende Zuverdienst gleich bleibt oder sogar fällt. Der ebenfalls im Zuge der Hartz-Reform eingeführte Kinderzuschlag, der eigentlich die Arbeitsanreize für Familien erhöhen soll, verschärft die negativen Wirkungen sogar noch. Dieser Artikel stellt die Freibetragsregeln des neuen Arbeitslosengelds II dar und analysiert Reformvorschläge, die die Regelungen transparenter machen und das Problem fallender Zuverdienste vermeiden." (Autorenreferat)

In die Vorschläge der Hartz-Kommission werden große Hoffnungen bei der Bekämpfung der Arbeitslosigkeit gesetzt. Vor allem die Mini-Jobs, die nach der Einigung im Vermittlungsausschuss sowohl von den Regierungsparteien als auch von der Opposition hoch gelobt werden, sollen neue Chancen für Arbeitslose bieten. Sind die Mini-Jobs ein arbeitsmarktpolitischer Fortschritt? Werden sie die in sie gesetzten Erwartungen erfüllen können?