Promoting the dual earner family: is the German welfare state following the social investment strategy?

Abstract: This master thesis examines if the German welfare state is following the social investment strategy in relation to one of its core components, the dual earner family model. The thesis considers four, interrelated policy areas that promote the dual earner family. Regarding the appropriate design of parental leave, formal childcare services, part-time employment regulation and the taxation of spouse earnings, concrete requirements are developed. These policy areas are directly linked to the employment patterns of parents. The comparison of the actual policies in Germany with the requirements reveals an incoherent policy design. It also shows huge differences between West and East Germany in relation to formal childcare services. The analysis of the employment data on parents from the German Mikrozensus 2010 and 2011 points to deficiencies in the four policy areas. Clear differences between West and East Germany are observable. Mothers in East Germany combine employment and family more often. This can partly be attributed to the higher formal childcare supply in East Germany. The results indicate that the German welfare state is partly following the social investment strategy. Future research has to consider other factors affecting the employment patterns of parents.