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Aus Hartz IV wird Bürgergeld — nur alter Wein in neuen Schläuchen?
[From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?]

Author

Listed:
  • Maximilian Blömer

    (ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität Muenchen e.V.)

  • Clemens Fuest

    (ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität Muenchen e.V.)

  • Andreas Peichl

    (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.

Suggested Citation

  • Maximilian Blömer & Clemens Fuest & Andreas Peichl, 2022. "Aus Hartz IV wird Bürgergeld — nur alter Wein in neuen Schläuchen? [From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(2), pages 78-81, February.
    • Handle: RePEc:spr:wirtsc:v:102:y:2022:i:2:d:10.1007_s10273-022-3104-9
    DOI: 10.1007/s10273-022-3104-9
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    References listed on IDEAS

    as
    1. Bruckmeier, Kerstin & Pauser, Johannes & Walwei, Ulrich & Wiemers, Jürgen, 2013. "Simulationsrechnungen zum Ausmaß der Nicht-Inanspruchnahme von Leistungen der Grundsicherung : Studie im Auftrag des Bundesministeriums für Arbeit und Soziales zur Abgrenzung und Struktur von Referenz," IAB-Forschungsbericht 201305, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Maximilian Joseph Blömer & Clemens Fuest & Andreas Peichl, 2019. "Raus aus der Niedrigeinkommensfalle(!) – Der ifo-Vorschlag zur Reform des Grundsicherungssystems," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(04), pages 34-43, February.
    3. Maximilian Joseph Blömer & Sebastian Link & Andreas Peichl & Marc Stöckli, 2021. "The Effects of the Means-tested Basic Income Support on the Behavior of Households - an Overview," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 120.
    4. Kerstin Bruckmeier & Jürgen Wiemers, 2012. "A new targeting: a new take-up?," Empirical Economics, Springer, vol. 43(2), pages 565-580, October.
    5. Peichl Andreas & Bierbrauer Felix & Sachs Dominik & Weishaar Daniel, 2021. "Mehrheitsfähige und wohlfahrtssteigernde Reformen des deutschen Steuer- und Transfersystems: Von Entzugsraten, Mittelstands- und Wohlstandsbäuchen," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 22(3), pages 191-202, September.
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    More about this item

    Keywords

    J65; J68;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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