Arbeitsmarktwirkungen sind gering : Reformvorschläge zur Grundsicherung für Arbeitsuchende

In this statement, the IAB comments on selected aspects of a draft law submitted by the governing parliamentary parties of the Christian Democrats (CDU/CSU) and Liberals (FDP), and on petitions filed by the Green (Bundnis 90/Die Grunen) and Left (Die Linke) parties and the Social Democrats (SPD). These propositions are concerned with needs for regulation (in particular for the identification of concealed poverty), the new unemployment benefit top-up regulation, claims for a general minimum wage, promotion of the integration and participation of long-term unemployed people in the working life, the priority of education for people under 25 within the scope of the Social Code II, and the introduction of a social labour market. The IAB suggests that foreseeable labour market effects, resulting from the implementation of a law on the identification of benefit recipients' needs and on changes in the Social Codes II and XII, are rather small. Neither does the adjustment of regulation decrease incentives to take up work in the low-wage sector. The adjustment, furthermore, will not create higher fiscal burdens. Neither will the reform of tax exemption (of those topping up Unemployment Benefit II transfers by earnings from minor employment) have significant effects on the labour market or lead to additional costs.