From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?

Abstract In this article, we discuss reform elements of “Hartz IV”. This includes, on the one hand, merging unemployment benefits with housing benefits and the additional child benefits (Kinderzuschlag) and, on the other hand, reducing disincentives which prevent the recipients from earning higher i...

Full description

Saved in:
Bibliographic Details
Main Authors: Maximilian Blömer, Clemens Fuest, Andreas Peichl
Format: Article
Language:deu
Published: Sciendo 2022-02-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-022-3104-9
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1832574304088227840
author Maximilian Blömer
Clemens Fuest
Andreas Peichl
author_facet Maximilian Blömer
Clemens Fuest
Andreas Peichl
author_sort Maximilian Blömer
collection DOAJ
description Abstract In this article, we discuss reform elements of “Hartz IV”. This includes, on the one hand, merging unemployment benefits with housing benefits and the additional child benefits (Kinderzuschlag) and, on the other hand, reducing disincentives which prevent the recipients from earning higher incomes. Employment incentives can be improved if the effective marginal transfer withdrawal rate is reduced and, at the same time, the preferential treatment of “mini jobs” is reduced. In addition, the eligibility criteria should be simplified. This could reduce the rate of non-takeup and thus hidden poverty. One criticism of such a reform of Hartz IV is that it would increase the number of transfer recipients. However, this is not an economically sensible outcome in a reform effort. What is important is the disposable income of transfer recipients affected and that the design of the transfer withdrawal does not create lock-in effects.
format Article
id doaj-art-8471f70d53e34a6283b7ae1ea8f195a0
institution Kabale University
issn 0043-6275
1613-978X
language deu
publishDate 2022-02-01
publisher Sciendo
record_format Article
series Wirtschaftsdienst
spelling doaj-art-8471f70d53e34a6283b7ae1ea8f195a02025-02-02T00:01:33ZdeuSciendoWirtschaftsdienst0043-62751613-978X2022-02-011022788110.1007/s10273-022-3104-9From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?Maximilian Blömer0Clemens Fuest1Andreas Peichl2ifo Zentrum für Makroökonomik und Befragungen, ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität Muenchen e.V.ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität Muenchen e.V.ifo Zentrum für Makroökonomik und Befragungen, ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität Muenchen e.V.Abstract In this article, we discuss reform elements of “Hartz IV”. This includes, on the one hand, merging unemployment benefits with housing benefits and the additional child benefits (Kinderzuschlag) and, on the other hand, reducing disincentives which prevent the recipients from earning higher incomes. Employment incentives can be improved if the effective marginal transfer withdrawal rate is reduced and, at the same time, the preferential treatment of “mini jobs” is reduced. In addition, the eligibility criteria should be simplified. This could reduce the rate of non-takeup and thus hidden poverty. One criticism of such a reform of Hartz IV is that it would increase the number of transfer recipients. However, this is not an economically sensible outcome in a reform effort. What is important is the disposable income of transfer recipients affected and that the design of the transfer withdrawal does not create lock-in effects.https://doi.org/10.1007/s10273-022-3104-9
spellingShingle Maximilian Blömer
Clemens Fuest
Andreas Peichl
From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
Wirtschaftsdienst
title From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
title_full From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
title_fullStr From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
title_full_unstemmed From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
title_short From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?
title_sort from hartz iv to burgergeld merely old wine in new bottles
url https://doi.org/10.1007/s10273-022-3104-9
work_keys_str_mv AT maximilianblomer fromhartzivtoburgergeldmerelyoldwineinnewbottles
AT clemensfuest fromhartzivtoburgergeldmerelyoldwineinnewbottles
AT andreaspeichl fromhartzivtoburgergeldmerelyoldwineinnewbottles