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Roschan Monsef / Holger Schäfer / Jörg Schmidt IW-Trends No. 2 25. May 2021 The Trend Towards Second Jobs – Just a Question of Money?

In recent years, an increasing number of dependent employees have become multiple jobholders.

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The Trend Towards Second Jobs – Just a Question of Money?
Roschan Monsef / Holger Schäfer / Jörg Schmidt IW-Trends No. 2 25. May 2021

The Trend Towards Second Jobs – Just a Question of Money?

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German Economic Institute (IW) German Economic Institute (IW)

In recent years, an increasing number of dependent employees have become multiple jobholders.

This study investigates whether such secondary employment is primarily pursued to avoid social hardship. An empirical analysis shows that the motives of multiple jobholders differ significantly according to whether their ‘moonlighting’ involves dependent or self-employment. 41 per cent of employees who are self-employed in their side jobs have a university degree, a proportion significantly higher than the one among single jobholders and those working for more than one employer. Moreover, their main income tends to be above average. For employee multiple jobholders, on the other hand, financial factors are likely to play a key role. Not only is their gross hourly wage in their main job likely to be lower than that of single jobholders but their primary employment is also considerably more likely to be part-time. However, the total household income of employee multiple jobholders, including income from side jobs, does not differ significantly from that of single jobholders. Further analyses show that employees with lower main income are more likely to be holding down multiple jobs, even under otherwise equal conditions. However, this does not apply if income from secondary employment is also taken into account. Labour policy which made secondary employment less attractive, for example by raising the tax and insurance burdens for limited-hour contracts, could therefore increase the risk of poverty for those whose earning potential in their main job is limited.

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The Trend Towards Second Jobs – Just a Question of Money?
Roschan Monsef / Holger Schäfer / Jörg Schmidt IW-Trends No. 2 25. May 2021

The Trend Towards Second Jobs – Just a Question of Money?

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German Economic Institute (IW) German Economic Institute (IW)

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Matthias Diermeier/ Jan Felix Engler / Holger Schäfer IW-Trends No. 1 23. May 2023

Too Much or Too Little Reform?: Public Discussion of the Revised Unemployment Benefit

Under its new name, Citizens' Benefit (Bürgergeld), Germany’s reformed unemployment benefit was supposed to put basic benefits for job-seekers on a new footing and fulfil the political promise to "overcome" its controversial predecessor known, after its ...

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Wido Geis-Thöne IW-Report No. 25 25. April 2023

Immigration from Latin America: Successes and potential for securing skilled workers

Against the background of the baby boomers leaving the labour market, Germany will be increasingly dependent on skilled workers from abroad in the coming years in order to secure growth and prosperity.

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