Konzept der Anreizethik zur Weiterentwicklung der sozialen Grundsicherung nach Hartz IV
Joachim Wilde
Zeitschrift für Wirtschafts- und Unternehmensethik,
2007
Abstract
Reforms of benefits for long-term unemployed in Germany are usually discussed in terms of workfare and financial incentives. This paper broadens the discussion with a concept of incentive ethics. It analyzes how the dependency on benefits can be left out by allocating so-called moral goods to the longterm unemployed. Comparing the new concept with the last reform ("Hartz IV"), the shortcomings of this reform are revealed. Thus, the paper concludes with a new reform proposal.
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Institutional settings of social assistance: What is improved or unsolved by the
Joachim Wilde
Institutionen und Arbeitsmarkt: Messkonzepte, Wirkungszusammenhänge und internationaler Vergleich,
2006
Abstract
The last reform of benefits for long-term unemployed in Germany ("Hartz IV") did not reduce costs. Moreover, the number of recipients is much higher than it was expected before. Therefore, the institutional settings might be less effective than they could be. Initially, the paper describes the institutional changes by the "Hartz IV" reform. Afterwards, these changes are evaluated with respect to their effects on the number of recipients. The evaluation is based on the results of econometric studies concerning the former social assistance. It is pointed out that the reform improved basic conditions and incentives only partly, whereas some of its elements worsened the institutional settings.
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Hartz IV: not enough learned from welfare
Joachim Wilde
Wirtschaft im Wandel,
No. 2,
2006
Abstract
The so-called “Hartz IV reform“ should improve the system of services and benefits for the long-term unemployed in Germany. Thus, it was expected that the number of recipients and the volume of expenditures will decrease. However, both are higher than before. Therefore, the institutional settings might be less effective than they could be. Initially, the paper describes the institutional changes by the “Hartz IV“ reform. Afterwards, these changes are evaluated with respect to their effects on the number of recipients. The evaluation is based on the results of econometric studies concerning the former social assistance. It is pointed out that the reform improved basic conditions and incentives only partly, whereas some of its elements worsened the institutional settings.
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A Concept of Incentive Ethics for the Enhancement of the Social Financial Security According to Hartz IV
Joachim Wilde
IWH Discussion Papers,
No. 1,
2006
Abstract
Reforms of benefits for long-term unemployed in Germany are usually discussed in
terms of workfare and financial incentives. This paper broadens the discussion with a concept of incentive ethics. It analyzes how the dependency on benefits can be left out by allocating so-called moral goods to the long-term unemployed. Comparing the new concept with the last reform (“Hartz IV“), the shortcomings of this reform are revealed. Thus, the paper concludes with a new reform proposal.
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Determinants of employment - the macroeconomic view
Christian Dreger, Heinz P. Galler, Ulrich (eds) Walwai
Schriften des IWH,
No. 22,
2005
Abstract
The weak performance of the German labour market over the past years has led to a significant unemployment problem. Currently, on average 4.5 mio. people are without a job contract, and a large part of them are long-term unemployed. A longer period of unemployment reduces their employability and aggravates the problem of social exclusion.
The factors driving the evolution of employment have been recently discussed on the workshop Determinanten der Beschäftigung – die makroökonomische Sicht organized jointly by the IAB, Nuremberg, and the IWH, Halle. The present volume contains the papers and proceedings to the policy oriented workshop held in November 2004, 15-16th. The main focus of the contributions is twofold. First, macroeconomic conditions to stimulate output and employment are considered. Second, the impacts of the increasing tax wedge between labour costs and the take home pay are emphasized. In particular, the role of the contributions to the social security system is investigated.
In his introductory address, Ulrich Walwei (IAB) links the unemployment experience to the modest path of economic growth in Germany. In addition, the low employment intensity of GDP growth and the temporary standstill of the convergence process of the East German economy have contributed to the weak labour market performance. In his analysis, Gebhard Flaig (ifo Institute, München) stresses the importance of relative factor price developments. A higher rate of wage growth leads to a decrease of the employment intensity of production, and correspondingly to an increase of the threshold of employment. Christian Dreger (IWH) discusses the relevance of labour market institutions like employment protection legislation and the structure of the wage bargaining process on the labour market outcome. Compared to the current setting, policies should try to introduce more flexibility in labour markets to improve the employment record. The impact of interest rate shocks on production is examined by the paper of Boris Hofmann (Deutsche Bundesbank, Frankfurt). According to the empirical evidence, monetary policy cannot explain the modest economic performance in Germany. György Barabas and Roland Döhrn (RWI Essen) have simulated the effects of a world trade shock on output and employment. The relationships have been fairly stable over the past years, even in light of the increasing globalization. Income and employment effects of the German tax reform in 2000 are discussed by Peter Haan and Viktor Steiner (DIW Berlin). On the base of a microsimulation model, household gains are determined. Also, a positive relationship between wages and labour supply can be established. Michael Feil und Gerd Zika (IAB) have examined the employment effects of a reduction of the contribution rates to the social security system. To obtain robust results, the analysis is done under alternative financing scenarios and with different macroeconometric models. The impacts of allowances of social security contributions on the incentives to work are discussed by Wolfgang Meister and Wolfgang Ochel (ifo München). According to their study, willingness to work is expected to increase especially at the lower end of the income distribution. The implied loss of contributions could be financed by higher taxes.
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Hartz IV: 1-Euro-Jobs setzen falsche Anreize
Herbert Buscher
Wirtschaft im Wandel,
No. 11,
2004
Abstract
The paper analyzes the different incentives due to different possibilities of additional earnings to the receipt of unemployment benefits. Long term unemployed people may earn additional income due to a regular occupation in the first labor market or due to social work. In the latter case people receive a expense allowance which they are allowed to hold for the full amount. Contrary to this income earned in a regular job is partly reduced (by 85 % for the first 400 Euro, e.g.) which might make working in the social or common sector more attractive than working in the first labor market. Secondly, given the unemployment benefits and the additional amount of earnings it might be more attractive with respect to total income than the income earned in the low wage sector of the economy. This might imply a negative incentive for those who are working in a low wage sector.
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Evaluation von Maßnahmen der aktiven Arbeitsmarktpolitik mit Hilfe eines iterativen Matching-Algorithmus - Eine Fallstudie über langzeitarbeitslose Maßnahmeteilnehmer in Sachsen
Eva Reinowski, Birgit Schultz, Jürgen Wiemers
IWH Discussion Papers,
No. 173,
2003
Abstract
The paper evaluates the effects of two labor market programs in Germany, namely the Job Creation- /Structural Adjustment Scheme and Vocational Training, on the unemployment duration of long term unemployed persons. The study uses data from the Mikrozensus Sachsen. A two step Nearest-Neighbor-Matching is employed to solve the sample selection problem. The first step is the estimation of the participation tendency to obtain potential pairs and to compute their Mahalanobis distances. For the assignment of pairs in the second step two different procedures are used: a standard technique and a new one - the iterative improvement of an initial assignment. This process is superior to the standard matching algorithms in the sense that it allows for a closer match between participants and non-participants. Including additional information about a person’s employment history enables us to eliminate the bias due to unobservables. The impact of participation in a labor market program is evaluated by comparing the unemployment duration between both groups using the Cox Proportional Hazard Model. Overall we find empirical evidence that both participation in Job Creation- /Structural Adjustment Scheme and Vocational Training result in even longer unemployment.
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