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Postscript: The propositions of the Hartz Commission

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  • Hans-Werner Sinn
  • Michael Vierling

Abstract

Following the contributions in ifo Schnelldienst 15/2002, Prof. Hans-Werner Sinn, Ifo Institute and Munich University, adds his critical remarks to the propositions of the Hartz Commission. In his opinion "the propositions of the Hartz Commission are welcome in principle because they bring movement into the stagnant discussion in our country. The taboo that politicians imposed on the labour market has finally been broken." The report is strongest in its proposals for the reform of the Federal Labour Agency, it is weak with regard to countering unemployment. And "the idea of subsidising jobs in all qualification stages of the labour market by means of a Personal Service Agency would lead to creeping socialism in the entire labour market and is not compatible with a free market economy. The heart of the Hartz proposal is unrealisable." Prof. Dr. Michael Vierling, Federal College of Public Administration, Mannheim, presents his position on individual "innovation modules", asking primarily about the stimuli and stimulus changes which are associated with an alternation of the labour market policy regime: "What behaviour changes for the beneficiaries and contributors will be effected? Do the plans for the activation of those affected or threatened by unemployment pay sufficient attention to physical and financial stimuli?"

Suggested Citation

  • Hans-Werner Sinn & Michael Vierling, 2002. "Postscript: The propositions of the Hartz Commission," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(18), pages 14-20, September.
    • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:18:p:14-20
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    References listed on IDEAS

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    1. Wolfgang Ochel & Martin Werding, 2002. "And where do the jobs come from? Critical comments on the proposals of the Hartz Commission," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(15), pages 10-18, August.
    2. Schneider, Hilmar & Zimmermann, Klaus F. & Bonin, Holger & Brenke, Karl & de New, John & Kempe, Wolfram, 2002. "Beschäftigungspotenziale einer dualen Förderstrategie im Niedriglohnbereich," IZA Research Reports 5, 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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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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