Is Working Worth It?

The question “Is working still worth it?” is back.

Few recurring political debates are as heated as the supposed stagnation of the income gap. But recent data from the Institute of Economic and Social Research (WSI) show that people working full-time for the minimum wage have noticeably more money than those receiving only basic income support. Single people have €623 more per month on the national average. For single parents with one child, the difference is €757 including housing benefit and child supplement; for a four-person family with one earner, it is €749. Regional differences are mainly due to housing costs. Because basic income support covers rent, the additional amount for single people ranges from €404 in Munich to €755 in Nordhausen.

That this advantage is also felt in everyday life is demonstrated by a long-term analysis by DIW Berlin. Although the relative poverty rate has risen to 17% since 2002, workers’ sense of financial security has grown considerably thanks to wage increases and the minimum wage. Between 2002 and 2022, net incomes rose by 67% (from €1,470 to €2,460), while the amount people felt they needed to live on increased by only 39% (from €1,190 to €1,660). Consequently, the share of people who felt they had a financial shortfall fell from 28.3% to 19.8%. Among unemployed people receiving social benefits, however, this sense of deprivation has remained unchanged at around 74% for two decades. Paid work therefore measurably protects against feeling financially deprived.

These topics also caught our attention:

• Motherhood Penalty & Fatherhood Bonus: While fathers are often praised at work for their commitment to family, a lack of visibility and outdated workplace cultures still hinder mothers returning to work, according to Frankfurter Rundschau.

• Salary comparison: An interactive tool from IW Köln shows, using EU data, whether your monthly net income places you in the middle of the overall population or already among the affluent upper class.

• Workplace health providers ranked: A new study by SWI and the SZ Institute recognizes the leading providers of workplace health services based on customer reviews and online feedback.

• US midterms watch party: Numerous new positions will be filled in the US next week, too: voters in the midterm elections will choose members of the House of Representatives, about a third of the Senate and numerous governors. We warmly invite you to spend election night at the watch party hosted jointly by the Konrad Adenauer Foundation and polisphere. You can register directly here.

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