Reform der Hinzuverdienstmöglichkeiten für Grundsicherungsbeziehende und Wechselwirkungen mit vorrangigen Leistungen: Auswirkungen auf Arbeitsangebot und Empfängerzahlen

Abstract

"In this paper, we simulate the effects of a significant reduction of the benefit withdrawal rate for employed recipients of unemployment benefit II (Arbeitslosengeld II, UB II) on labour supply, public budgets and the number of benefit recipients. Our analysis uses a static microsimulation model (IAB-MSM), which includes a discrete-choice labour supply model for Germany based on data from the Socio-Economic Panel. The study takes into account the interaction of the reform with the means-tested housing benefit (Wohngeld) and the enhanced child benefit (Kinderzuschlag). The results show that improved earnings opportunities for UB II recipients can only increase labour supply to a limited extent, while we simulate high fiscal costs and strong effects on the number of recipients of UB II and the enhanced child benefit. Our findings suggest that in order to improve monetary work incentives for low-income households and at the same time not significantly increase UB II dependency, more comprehensive reform approaches are needed that take into account the entire tax and benefit system." (Author's abstract, © De Gruyter) ((en))

Cite article

Bruckmeier, K., Mühlhan, J. & Wiemers, J. (2021): Reform der Hinzuverdienstmöglichkeiten für Grundsicherungsbeziehende und Wechselwirkungen mit vorrangigen Leistungen: Auswirkungen auf Arbeitsangebot und Empfängerzahlen. In: Zeitschrift für Sozialreform, Vol. 67, No. 1, p. 29-58. DOI:10.1515/zsr-2021-0002