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The German Federal Constitutional Court's ruling on the Hartz-IV standard rates: background and significance

Stefan Bauernschuster, Wido Geis, Christian Holzner, Helmut Rainer
ifo Institut für Wirtschaftsforschung, München, 2010

ifo Schnelldienst, 2010, 63, Nr. 05, 21-29

On 9 February 2010 the Federal Constitutional Court ruled that the calculation of the Hartz-IV standard rates is not in conformance with the German Constitution. This article presents the current legal situation of Hartz IV, the criticism of the court, an alternative calculation and payment modality for the current system and discusses ways to improve the reforms.

JEL Classification: H550,J210,J640,K100

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ifo Institut für Wirtschaftsforschung, München, 2010