Gainful employment in transfer households: Poor despite work

Abstract

Among the 40 million persons in gainful employment in Germany, more and more are working full-time but still require help from the state for themselves and their families. The author examines the poverty risk faced by these persons based on data made available through the microcensuses 2000-2006 and against the background of the third report on poverty and wealth 'Lebenslagen in Deutschland' (Living conditions in Germany) published by the Federal Government in July 2008 as well as the poverty risk quotas based on the Socio-economic Panel (SOEP). He shows that in addition to the poverty risks in the poverty report the scope of social benefits has increased both in the population as a whole and particularly in households where members are engaged in gainful employment. The drop in the contribution of social transfers towards reducing the poverty risk, as seen in the SOEP time series, is due - in the opinion of the author - to the generally stagnating level of benefits for housing allowances and social assistance, which was followed with the consolidation into a lump sum of one-off benefits via the SGB II (Book II of the Social Code). 'The existence of transfer benefits during full-time employment is not a phenomenon that is only to be observed with the introduction of SGB II.' (IAB)

Cite article

Rudolph, H. (2008): Erwerbstätigkeit in Transferhaushalten: Arm trotz Arbeit. In: IAB-Forum No. 2, p. 34-39.