More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System

Abstract The German federal government is planning a radical reform of the basic income scheme for the long-term unemployed. Besides strengthening qualification measures and removing the priority on job placement they want to improve the additional income rules for transfer recipients. To achieve th...

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Main Author: Friedrich Breyer
Format: Article
Language:deu
Published: Sciendo 2022-09-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-022-3256-7
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author Friedrich Breyer
author_facet Friedrich Breyer
author_sort Friedrich Breyer
collection DOAJ
description Abstract The German federal government is planning a radical reform of the basic income scheme for the long-term unemployed. Besides strengthening qualification measures and removing the priority on job placement they want to improve the additional income rules for transfer recipients. To achieve this goal, they must solve the puzzle of how to reduce the almost prohibitively high transfer withdrawal rates in case of own earnings without rendering the whole system too expensive. The solution presented is a variation of the “workfare” model by Besley and Coate (1992) and consists of two elements: lowering the basic allowance for those who do not want to work and providing a job guarantee for those willing to work so that all persons capable of work can contribute to covering their consumption needs.
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institution Kabale University
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language deu
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series Wirtschaftsdienst
spelling doaj-art-afaab2c38c95433dad5696fb1d829ca52025-02-02T02:43:39ZdeuSciendoWirtschaftsdienst1613-978X2022-09-01102862963410.1007/s10273-022-3256-7More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare SystemFriedrich Breyer0FB Wirtschaftswissenschaften, Universität KonstanzAbstract The German federal government is planning a radical reform of the basic income scheme for the long-term unemployed. Besides strengthening qualification measures and removing the priority on job placement they want to improve the additional income rules for transfer recipients. To achieve this goal, they must solve the puzzle of how to reduce the almost prohibitively high transfer withdrawal rates in case of own earnings without rendering the whole system too expensive. The solution presented is a variation of the “workfare” model by Besley and Coate (1992) and consists of two elements: lowering the basic allowance for those who do not want to work and providing a job guarantee for those willing to work so that all persons capable of work can contribute to covering their consumption needs.https://doi.org/10.1007/s10273-022-3256-7
spellingShingle Friedrich Breyer
More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
Wirtschaftsdienst
title More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
title_full More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
title_fullStr More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
title_full_unstemmed More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
title_short More Incentives — Less Sanctions: a Proposal for a Reform of the Welfare System
title_sort more incentives less sanctions a proposal for a reform of the welfare system
url https://doi.org/10.1007/s10273-022-3256-7
work_keys_str_mv AT friedrichbreyer moreincentiveslesssanctionsaproposalforareformofthewelfaresystem