Part-Time Debate: Economist Haan Calls for Tax Reforms as Incentive - Germany's full-time work crisis: Why tax rules and childcare gaps hold workers back
Labour market expert Peter Haan has called for major changes to support full-time employment in Germany. He warns that current policies—particularly tax rules and childcare gaps—are holding people back from working longer hours. His comments come as the CDU's economic wing proposes restricting part-time work rights, a move Haan views with scepticism.
Haan highlighted two main barriers to full-time work: inadequate childcare and tax disincentives. He pointed out that many daycare centres lack afternoon supervision for school-aged children, making it difficult for parents to extend their working hours. Elderly care infrastructure also needs improvement, he added.
The current tax system is another obstacle, according to Haan. It often rewards households where one partner works full-time while the other stays home or works part-time. This structure discourages both partners from taking on full-time roles, even if they want to.
Haan acknowledged that the 2001 introduction of part-time work rights did boost overall employment rates. However, he argued that simply restricting those rights now could backfire. Some workers, he warned, might leave the labour force entirely if forced to choose between inflexible full-time hours or quitting.
Instead of rolling back part-time protections, Haan proposed structural tax reforms. These changes would aim to make full-time work more attractive without necessarily increasing the overall tax burden.
Haan's recommendations focus on practical solutions: better childcare and eldercare services alongside tax adjustments. The goal is to remove barriers that currently push workers toward part-time roles. Without these changes, he suggests, efforts to restrict part-time work could end up reducing employment rather than expanding it.
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