Activation Policies in Germany: From Status Protection to Basic Income Support

66 Pages Posted: 11 Jan 2007

See all articles by Werner Eichhorst

Werner Eichhorst

Institute for the Study of Labor (IZA)

Maria Grienberger-Zingerle

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Foreign and International Social Law

Regina Konle-Seidl

Institute for Employment Research (IAB)

Date Written: December 2006

Abstract

This paper provides an overview of the sequential shift towards activating labor market and social policy in Germany. It not only shows the changes in the instruments of active and passives labor market policies but also analyzes the implications of this change for the political economy, the governance and the legal structure of a "Bismarckian" welfare state. Our study points at the changes in Germany's status- and occupation-oriented unemployment benefit regime that has been relinquished for a larger share of dependent population. Unemployment insurance benefit duration is shorter now and newly created basic income support for needy persons is not earnings-related anymore. Pressure on unemployed to take up jobs has increased considerably while more persons than before have access to employment assistance. The paper also aims at a preliminary assessment of the effects of activating labor market policy on labor market as well as social outcomes and sets out probable paths of future adaptation.

Keywords: activation, unemployment insurance, unemployment assistance, Germany

JEL Classification: J68

Suggested Citation

Eichhorst, Werner and Grienberger-Zingerle, Maria and Konle-Seidl, Regina, Activation Policies in Germany: From Status Protection to Basic Income Support (December 2006). IZA Discussion Paper No. 2514, Available at SSRN: https://ssrn.com/abstract=955860

Werner Eichhorst (Contact Author)

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Maria Grienberger-Zingerle

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Foreign and International Social Law ( email )

Amalienstr. 33
D-80799 Munich
Germany

Regina Konle-Seidl

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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