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OECD recommends reforms in Germany

married couple with children

Spousal separation is especially helpful for couples where one spouse earns a lot and the other does not work much or at all. In fact, this often prevents women from returning to full-time employment after taking time off for family reasons.

(Photo: dpa)

Berlin The OECD, the group of industrialized countries, sees a suitable way to tackle the shortage of skilled workers in the controversial spousal separation reform. “Second earners have lower incentives to work more in Germany compared to international ones, also because of spouse separation,” Nicolas Brandt, head of the OECD’s Berlin Center, told Reuters on Thursday.

Sweden’s experience with the abolition of the death penalty in the early 1970s and modeling studies by the German Institute for Economic Research suggest that reforms can significantly increase women’s full-time employment

“This means that reforms could be an effective means of addressing skilled worker shortages while contributing to gender equality in paid and unpaid work,” Brandt said. “If this is combined with further expansion of high-quality childcare or extending parental allowance This is especially the case when the paternity months are carried out at the same time.”

Experts from the Organization for Economic Co-operation and Development (OECD) added that several concepts provide for additional tax burdens in the event of a spousal separation reform aimed only at high-income families.

“The current system encourages second earners to work part-time or limits their income,” said Isabel Kosk, deputy director of the OECD’s economics department. Reform of the tax rules is “critical”.

It could have a significant impact on labor supply while generating additional tax revenue. “The additional revenue from the reforms could be used to further improve access to quality childcare and early childhood education,” Kosk said. This would help increase the supply of female workers.

The debate between the Greens and the Liberal Democrats

SPD leader Lars Klingbeil has introduced the abolition of spouse separation into newly contracted marriages. This is especially helpful for couples where one partner earns a lot and the other doesn’t work much or at all. In fact, this often prevents women from returning to full-time employment after taking time off for family reasons.

The Greens are open to Klimber’s proposal, but the Liberal Democrats are clearly opposed. Liberals are aware of some form of tax increase, but it is not included in the Traffic Light Party’s coalition agreement. Florian Tonka (FDP), parliamentary secretary of state at the Ministry of Finance, recently tweeted: “The abolition of spousal separation is just a tax increase for many couples.”

more: Why Traffic Lights Don’t dare to Reform Separation Marriage