Nickel and Dimed German Style: The Working Poor in Germany

Using data from the German SOEP, this paper analyses whether there have been (a) any significant changes in poverty rates and poverty intensities before and after the Hartz IV reforms and (b) whether there have been observable changes in the effect of employment in reducing the threat or intensity of poverty. Using multivariate analyses we can find no evidence of increases in poverty rates comparing the time period 2002-2004 with that of 2005-2006. Further we find no change in the effect of employment in reducing the probability and intensity of poverty during this time period. The working poor phenomenon in Germany remains relatively small and statistically unchanged by the Hartz reforms

Die Wege junger Erwachsener aus dem Arbeitslosengeld-II-Bezug durch eine Arbeitsmarktintegration

The study explores routes off benefits through labour market integration for young adults in Germany. Policies for young people are focused on a rapid integration into employment or training to prevent long-term benefits dependency. The causes of long-term benefits receipt can be related to poor labour market opportunities. But in political and public discourse, long-term benefits dependency is most widely regarded as the consequence of young adults' low labour supply. The article examines the labour market transitions of 650 beneficiaries aged 18 to 24. The analysis combines survey data on beneficiaries in Germany and longitudinal register data for 2005 to 2007. Though most of the young adults surveyed enter employment or vocational training, a high percentage continues to receive benefits. Long-term benefits receipt is related to low levels of qualifications and young parenthood; there is no evidence for young people resigning themselves to benefits receipt