New Regulations on Supplementary Income for Transfer Recipients: a Great Challenge

Abstract In its coalition agreement, the German government proposes a reorganisation of the rules of earned income to be considered as a means test of basic income. In doing so, it takes up a frequently voiced criticism of the design of the basic income support for job-seekers under Book II of the S...

Full description

Bibliographic Details
Main Authors: Kerstin Bruckmeier, Jürgen Wiemers
Format: Article
Language:deu
Published: Springer 2022-02-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-022-3107-6
Description
Summary:Abstract In its coalition agreement, the German government proposes a reorganisation of the rules of earned income to be considered as a means test of basic income. In doing so, it takes up a frequently voiced criticism of the design of the basic income support for job-seekers under Book II of the Social Code. In recent years, researchers have called for a strengthening of (monetary) incentives to work, especially to take up employment with higher weekly working hours. In this paper, we summarise potential effects of such a reform on labour supply, the income distribution and the government budget in the context of a complex welfare system characterised by a high level of benefit non-take-up.
ISSN:0043-6275
1613-978X