New Regulations on Supplementary Income for Transfer Recipients: a Great Challenge

New Regulations on Supplementary Income for Transfer Recipients: a Great Challenge

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Abstract In its coalition agreement, the German read more government proposes a reorganisation of the rules of earned income to be considered as a means test of basic income.In doing so, it takes up a frequently voiced criticism of the design of the basic income support for job-seekers under Book II of the Social Code.In recent years, researchers have called for a strengthening of (monetary) incentives to work, especially to take up employment with higher weekly working hours.In this paper, we summarise potential effects of such a reform on labour supply, the income distribution and the government iphone 14 price chicago budget in the context of a complex welfare system characterised by a high level of benefit non-take-up.