A new study shows that full-time minimum wage workers in Germany enjoy greater disposable income compared to recipients of unemployment benefits. The calculations from the Economic and Social Science Institute indicate that single individuals on minimum wage earn approximately 2,121.58 before tax, resulting in a disposable income of 1,572 after taxes and housing benefits. In contrast, those receiving the citizen's allowance only accumulate 1,015 with housing benefits. These findings challenge the notion that generous unemployment benefits discourage job seeking.
Full-time workers on minimum wage earn more disposable income than people receiving citizen's allowance, demonstrating the effectiveness of Germany's minimum wage in boosting earnings.
The calculations indicated that a full-time minimum wage worker in Germany has a total disposable income of 1,572 a month, which is significantly higher than the 1,015 total for a citizen's allowance recipient.
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