DIW chief: Women's part-time rate costs prosperity

Fratzscher had previously pointed to structural barriers for women in the labor market, such as the free co-insurance of spouses in statutory health insurance. He cited these factors again as reasons why many women do not extend their working hours.

Background: High part-time rate among women

In Germany, about half of working women work part-time. "Der Anteil an Frauen, die Teilzeit arbeiten, ist ungewöhnlich groß," said Fratzscher to the Redaktionsnetzwerk Deutschland. "Die Gesellschaft verzichtet so auf eine Menge Wohlstand." By removing existing barriers, the German labor market could, in his words, gain several hundred thousand additional full-time workers, "wenn wir Hürden abbauen würden und mehr Frauen dazu bewegen könnten, ihre Arbeitsstunden aufzustocken," said Fratzscher.

Fratzscher named several concrete barriers that hinder women in the job market. These included insufficient childcare in kindergartens and schools, low financial incentives due to spousal income splitting, and the widespread construction of mini-jobs. "Außerdem seien Minijobs für viele Frauen eine Falle," said the DIW president. In addition, the pay gap between men and women remains large.

Levers against the shortage of skilled workers

Beyond the immediate labor market balance, Fratzscher sees higher labor force participation by women as the "effektivste und beste Instrument" to stabilize the statutory pension system in Germany over the next 15 to 20 years. Higher contributors would ease the demographic burdens on pension insurance. "Wenn wir die Erwerbsbeteiligung von Frauen erhöhen, dann profitieren alle," he emphasized.

Fratzscher also referred to calculations by an EU agency, according to which greater gender equality could increase gross domestic product in Europe by up to ten percent by 2050. He described this magnitude as realistic. "Dadurch bleibt wirtschaftlich ein riesiges Potenzial ungenutzt," he said with a view to the current situation. Germany thus faces not only a social policy but also a growth policy task.

Impact on pensions and growth

From the DIW president's perspective, the political levers are known. In addition to expanding childcare and reforming spousal income splitting, this also includes a reassessment of mini-jobs, which keep many women in marginal employment. Fratzscher had previously identified the free co-insurance of spouses in statutory health insurance as a problem because it reduces the incentive for own employment.

The statements come at a time of subdued economic activity and ongoing debates about the financing of social insurance. Fratzscher therefore explicitly linked his diagnosis with a call to policymakers to change the structural framework conditions. Otherwise, the described prosperity potential would remain untapped.

Fratzscher did not comment in detail on the specific timeline for reforms. He made clear, however, that the next 15 to 20 years will be crucial for stabilizing the statutory pension system. Whether and in what order the named levers will be addressed remains open.