The Labour Market Effect of Social Security in Germany

Abstract

This paper investigates the relationship between social security and laobour market in Germany and calculates the regression relation among social security expenditure,social security contribution,enterprise investment and unemployment rate.The results Indicated that the labour market has a closed relevance with social security. Reducing the social security contribution of enterprise is an important means to control the unemployment.And the proper level social security expenditure is the most crucial factor to keep the beneficial cycle between social security and laobour market .
Key words: Social Security Contribution; Social Security Expenditure; Labour Market