Development and structure of low-wage work in Germany

The extent of low-wage work in Germany is hotly debated. In international comparisons fromthe mid-90s, Germany is often classified as a country with a low wage dispersion. Comparedto the USA and UK, Germany has a relatively equal income structure and a small proportionof low-paid workers (OECD 1996; OECD 1997). Only in the Scandinavian countries isincome inequality even lower. Furthermore, the OECD’s international comparative studiesshow that the chances of low-paid workers obtaining a better-paid job are higher in Germanythan in the United States, a country with more income inequality. This is frequently thejustification given for political measures and reforms that seek to extend low-wage work...