Abstract

The project examines the impact of the so-called "Karenzzeit Wohnen," which was introduced with the implementation of the Bürgergeld legislation in 2023. Bürgergeld is a means-tested welfare benefit that also covers the costs of accommodation. The "Karenzzeit" is a twelve-month period at the time of the initial receipt of welfare benefits during which the full costs of accommodation of the welfare recipients are covered. After twelve months, housing costs are only covered up to a threshold. Prior to the introduction of Bürgergeld, housing costs were only covered up to the threshold during the first twelve months. The objective of this project is to analyse the impact of the new legislation on both the recipients of the benefit and the local Job Centres, which are responsible for administering the benefit. The project also aims to analyse the fiscal effects of the new legislation. In order to achieve these objectives, the project will collect data on local housing cost thresholds and develop survey instruments for the following sources: the "Labour Market and Social Security Panel" (PASS), the high-frequency web survey "Online Panel for Labour Market Research" (OPAL), as well as the IAB Web Survey of Employees and the Management of Job Centres (OnJob). The analysis will also be based on geo-referenced administrative data from the Federal Employment Agency, which will be used to make causal statements about changes in the behaviour of welfare recipients in response to the introduction of the "Karenzzeit Wohnen". The project thus provides an evaluation of the "Karenzzeit Wohnen" in the context of the Bürgergeld reform, a quantification of important effects of the reform, and systematic information on the assessment and application of the Karenzzeit regulations by local Job Centres.