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...
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Language: | deu |
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Sciendo
2022-02-01
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Series: | Wirtschaftsdienst |
Online Access: | https://doi.org/10.1007/s10273-022-3104-9 |
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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 |