Economist Marcel Fratzscher has identified a higher rate of full-time employment among women as one of the most powerful levers available to shore up Germany's statutory pension system. A greater participation of women in the workforce would be "the most effective and best instrument to stabilise the statutory pension system in Germany over the next 15 to 20 years," Fratzscher told the newspapers of the Redaktionsnetzwerk Deutschland (RND) on Monday.
He added that the share of women working part-time in Germany is currently "exceptionally large" by international standards.
According to Fratzscher, dismantling the barriers that keep women in part-time positions could mobilise hundreds of thousands of additional full-time workers for the labour market. The current situation, he warned, not only denies women opportunities but also costs society "a great deal of prosperity." Fratzscher is president of the German Institute for Economic Research (DIW).
Fratzscher cited several structural factors behind Germany's comparatively high female part-time rate. Inadequate childcare provision at nurseries and schools was named as a primary cause.
On top of that, he pointed to a lack of financial incentives for full-time work, attributing this in part to the Ehegattensplitting, the joint spousal tax assessment system, and the free co-insurance of spouses under the statutory health insurance scheme. He also highlighted the role of marginal employment, noting that minijobs frequently become a "trap" for women.
The wage gap between men and women in Germany remains significant, Fratzscher said. "We are still miles away from genuine equality." He criticised policymakers for neglecting the issue so far.
The broader context is one of mounting strain on the pension system driven by demographic change. As life expectancy rises, the number of younger people entering the workforce is falling. Fewer contributors are now facing a growing number of pension recipients, a structural imbalance that makes reforms to boost labour market participation increasingly urgent.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
