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Erwerbstätige im unteren Einkommensbereich stärken : Ansätze zur Reform von Arbeitslosengeld II, Wohngeld und Kinderzuschlag

Author

Listed:
  • Bruckmeier, Kerstin

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Mühlhan, Jannek

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Wiemers, Jürgen

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Employed persons with low earnings living in low-income households can receive social benefits in addition to their earned income. The three most important means-tested benefits available for low-wage earners in Germany are social assistance for individuals capable of working (Arbeitslosengeld II), housing allowance (Wohngeld) and the enhanced child allowance (Kinderzuschlag). There exists a distinct overlap between these three benefit programs, which creates a complex benefit structure with high marginal tax rates, which negatively affects the individual labour supply. Additionally, the three programmes are characterised by high rates of non-take-up, indicating that the effectiveness of the programs in reaching their target groups could be improved. Using the microsimulation model of the IAB (IAB-MSM), which is based on representative panel data, we analyse the outcomes of implementing an in-work benefit designed close to social assistance, which addresses the weaknesses of the existing system. We compare labour supply, distributional as well as fiscal effects with a benchmark scenario, a set of policy changes the German government has recently agreed on. The results show that the in-work-benefit is well targeted to low-income households." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bruckmeier, Kerstin & Mühlhan, Jannek & Wiemers, Jürgen, 2018. "Erwerbstätige im unteren Einkommensbereich stärken : Ansätze zur Reform von Arbeitslosengeld II, Wohngeld und Kinderzuschlag," IAB-Forschungsbericht 201809, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabfob:201809
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    References listed on IDEAS

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    1. Kerstin Bruckmeier & Jannek Mühlhan & Andreas Peichl, 2018. "Mehr Arbeitsanreize für einkommensschwache Familien schaffen," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(03), pages 25-28, February.
    2. Wilhelm Haumann, 2014. "Die Akzeptanzanalysen: staatliche Familienleistungen aus Sicht der Bevölkerung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 83(1), pages 101-120.
    3. Kerstin Bruckmeier & Jürgen Wiemers, 2017. "Benefit take-up and labour supply incentives of interdependent means-tested benefit programmes for low-income households," EcoMod2017 10295, EcoMod.
    4. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Andreas Knabe, 2006. "Warum Zuverdienstregeln und Kinderzuschlag negative Arbeitsanreize setzen (Negative Arbeitsanreize durch Zuverdienstregeln und Kinderzuschlag) : Themenschwerpunkt Arbeitslosengeld II [zwei]," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages .10-15, April.
    6. Torsten Lietzmann & Paul Schmelzer & Jürgen Wiemers, 2017. "Marginal employment for welfare recipients: stepping stone or obstacle?," LABOUR, CEIS, vol. 31(4), pages 394-414, December.
    7. Lietzmann, Torsten & Schmelzer, Paul & Wiemers, Jürgen, 2017. "Marginal employment for welfare recipients: stepping stone or obstacle?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 31(4), pages 394-414.
    8. Wiemers Jürgen & Bruckmeier Kerstin, 2009. "Forecasting Behavioural and Distributional Effects of the Bofinger-Walwei Model using Microsimulation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(4), pages 492-511, August.
    9. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    10. Blundell, Richard, 2000. "Work Incentives and 'In-Work' Benefit Reforms: A Review," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(1), pages 27-44, Spring.
    11. Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, vol. 13(6), pages 699-720, December.
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    Cited by:

    1. Kerstin Bruckmeier & Jürgen Wiemers, 2022. "Neuregelung der Hinzuverdienstmöglichkeiten für Transferbeziehende: keine leichte Aufgabe [New Regulations on Supplementary Income for Transfer Recipients: a Great Challenge]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(2), pages 90-94, February.
    2. Maximilian Joseph Blömer & Simon Litsche & Andreas Peichl, 2019. "Reformoptionen für die Grundsicherung von Erwerbstätigen," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 108.
    3. Holger Schäfer, 2022. "Bürgergeld statt Hartz IV [Citizen’s Income (“Bürgergeld”) or Social Welfare (“Hartz IV”)?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(2), pages 82-85, February.

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