The model of the activating social welfare assistance comes from the president of the Ifo of institute Hans Werner sense.

Underlying cause analysis of high unemployment in Germany

The model is the basis a specific cause analysis of high unemployment in Germany. If one regards the qualification-specific unemployment ratio in Germany in the Zeitverlauf, then sense states that the university graduate unemployment ratio remained in fact constant in the last 30 years. The unemployment ratio of humans with professional training doubled itself from 4% in the year 1975 up to the year 2004 on 8%. The main cause for the rise of the unemployment ratio sees sense however with humans without professional training, with whom the unemployment ratio of 6% rose in the year 1975 to 22% in the year 2004. Since this development did not take place in such a way into other OECD of countries, the development cannot be explained with an increasing automation and technical progress. From this sense that obviously from its view to generous system of the wage spare payments in Germany prevented a larger spreading the Lohnskala imNiedriglohnbereich, concludes which condition for a higher occupation ratio with small-qualified would be.

Criticism at the existing wage replacement system

At the existing social welfare assistance system sense criticizes in particular its occupation-restraining effect. Wage conditions, which bring in an income under the social welfare assistance level, do not come off by the existing wage replacement system, in which there is only a national payment if someone does not work, in fact. This is for sense the principal reason, significantly for which in the international comparison high unemployment ratio of small-qualified.

The model of the activating social welfare assistance

Instead of the existing wage replacement system, the activating social welfare assistance plans a wage auxiliary system. So far if an unemployed person takes up an occupation in the low wage range, then he receives nevertheless further a national support. This support sinks with rising income, it guarantees however nevertheless in each case that someone works is better posed than someone does not work that. At the same time the national social security benefits for humans able to work those not work-willingly are clearly lowered, in the comparison to the existing system around 30%. So that this lowering meets really only work-indignant and the constitutionally demanded solidarity is further ensured, commits itself the municipalities everyone the need shows an occupation in local direction to offer, which is remunerated at height of the past ALG2. Can be lent local employing under engagement by private time work companies into the private sector. Only if a municipality of its obligation such an offer does not follow to submit, a support at height of the today's ALG2 is granted also without work. Contrary to other concepts, as for instance, the activating social welfare assistance each needy one is durably granted to the Mainzer model, so that depletion effects favour between and groups did not favour do not take place. The competitive situation between the welfare state and private employers is eliminated by the wage auxiliary system. The institute for economic research on a long-term basis prognosticates by the activating social welfare assistance occupation chances for 3.2 million humans. In addition the model would mean substantial savings after computations of the institute in relation to the existing system, which medium-term from 7.7 billion euro and about 21 billion euro to be on a long-term basis.

Criticism

• The model of the activating social welfare assistance is based on the acceptance that from a larger spreading result to the Lohnskala more jobs. Whether however evacuation of market in the sense of an equilibrium between supply and demand on the job market can be achieved by the promotion of the low wages is doubted, by many. If the 3.2 million of new jobs prognosticated on a long-term basis do not develop, then the municipalities of their obligation know to offer to everyone needy ones a work place not to follow.

• In addition taking along effects are to be feared, so that the wage level of existing employer-employee relationships is lowered. The prognosis of the institute for economic research that the positive effects will exceed the negative taking along effects, is not divided by all.

• Even if the municipalities verpflicheten themselves each work-willing recipient of services a job to offer, which secures the today's ALG2 level at least, of some constitutional doubts are stated, since they regard a sinking of the today's ALG2 Nivaus as work-indignant for an offence against the welfare state requirement.

• Cuts in welfare assistance for not work-willing raise the question, how will proceed with their children. If it gives for this no special payments of the state, then the Exitenzminimum of the children would be not ensured, what an offence against the welfare state requirement of the Basic Law would represent.

• That, from the system the following, high pressure a work will take up from some as unreasonable regarded.

Related links

• Ifo Institut
• Study of the Ifo of institute to the activating social welfare assistance

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