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The German Federal Constitutional Court's ruling on the Hartz-IV standard rates: background and significance

Author

Listed:
  • Stefan Bauernschuster
  • Wido Geis
  • Christian Holzner
  • Helmut Rainer

Abstract

On 9 February 2010 the Federal Constitutional Court ruled that the calculation of the Hartz-IV standard rates is not in conformance with the German Constitution. This article presents the current legal situation of Hartz IV, the criticism of the court, an alternative calculation and payment modality for the current system and discusses ways to improve the reforms.

Suggested Citation

  • Stefan Bauernschuster & Wido Geis & Christian Holzner & Helmut Rainer, 2010. "The German Federal Constitutional Court's ruling on the Hartz-IV standard rates: background and significance," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(05), pages 21-29, March.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:05:p:21-29
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2006. "Activating social welfare 2006 - the combi-wage model of the Ifo Institute," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(02), pages 06-27, January.
    2. Immervoll, Herwig, 2009. "Minimum-Income Benefits in OECD Countries: Policy Design, Effectiveness and Challenges," IZA Discussion Papers 4627, Institute of Labor Economics (IZA).
    3. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Active Welfare - A path to higher employment and growth," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, May.
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    Cited by:

    1. Philip Jung & Anke Hassel & Robert Habeck & Matthias Knuth & Alexander Spermann & Hans Peter Grüner & Maximilian Joseph Blömer & Clemens Fuest & Andreas Peichl, 2019. "Proposed labor market reforms: Is Hartz IV still sustainable?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(06), pages 03-25, March.
    2. Maximilian Joseph Blömer & Clemens Fuest & Andreas Peichl, 2019. "Out of the low-income trap(!) – The ifo proposal for reforming the basic income support system," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(04), pages 34-43, February.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

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