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Nickel and Dimed German Style: The Working Poor in Germany

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  • Haisken-DeNew, John P.
  • Schmidt, Christoph M.

Abstract

Using data from the German SOEP, this paper analyses whether there have been (a) any significant changes in poverty rates and poverty intensities before and after the Hartz IV reforms and (b) whether there have been observable changes in the effect of employment in reducing the threat or intensity of poverty. Using multivariate analyses we can find no evidence of increases in poverty rates comparing the time period 2002-2004 with that of 2005-2006. Further we find no change in the effect of employment in reducing the probability and intensity of poverty during this time period. The working poor phenomenon in Germany remains relatively small and statistically unchanged by the Hartz reforms.

Suggested Citation

  • Haisken-DeNew, John P. & Schmidt, Christoph M., 2009. "Nickel and Dimed German Style: The Working Poor in Germany," Ruhr Economic Papers 122, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:122
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    References listed on IDEAS

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    1. Kai-Uwe Müller & Viktor Steiner, 2008. "Imposed Benefit Sanctions and the Unemployment-to-Employment Transition: The German Experience," Discussion Papers of DIW Berlin 792, DIW Berlin, German Institute for Economic Research.
    2. Schmidt, Christoph M., 1999. "Knowing What Works: The Case for Rigorous Program Evaluation," IZA Discussion Papers 77, Institute of Labor Economics (IZA).
    3. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    4. Müller, Kai-Uwe & Steiner, Viktor, 2008. "Imposed Benefit Sanctions and the Unemployment-to-Employment Transition: The German Experience," IZA Discussion Papers 3483, Institute of Labor Economics (IZA).
    5. Hendrik Schmitz & Viktor Steiner, 2007. "Benefit-Entitlement Effects and the Duration of Unemployment: An Ex-ante Evaluation of Recent Labour Market Reforms in Germany," Discussion Papers of DIW Berlin 678, DIW Berlin, German Institute for Economic Research.
    6. repec:zbw:rwirep:0117 is not listed on IDEAS
    7. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    8. Ralf A. Wilke, 2005. "New Extimates of the Duration and Risk of Unemployment for West-Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(2), pages 207-237.
    9. Frick, Joachim R. & Jenkings, Stephen P. & Lillard, Dean R. & Lipps, Oliver & Wooden, Mark, 2007. "The Cross-National Equivalent File (CNEF) and Its Member Country Household Panel Studies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 127(4), pages 627-654.
    10. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
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    Cited by:

    1. Kerstin Bruckmeier & Jürgen Wiemers, 2010. "A New Targeting - A New Take-Up?: Non-take-up of Social Assistance in Germany after Social Policy Reforms," SOEPpapers on Multidisciplinary Panel Data Research 294, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Hans-Werner Sinn & Wido Geis & Christian Holzner, 2009. "Die Agenda 2010 und die Armutsgefährdung," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(17), pages 23-27, September.

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    More about this item

    Keywords

    Income distribution; unemployment; poverty;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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