Consequences of Means-Tested Basic Security Benefits

Tasks

In international comparison, the German tax and transfer system is considered as particularly complex. This is mainly due to the interaction of various transfer payments, which to some extent pursue different goals with respect to distribution and incentives. At the same time, the German system faces major challenges due to globalization, digitization, and technological progress. The introduction of an Unconditional Basic Income (UBI) has been under public debate for some time. In general, UBI is understood to be a transfer independent of income and employment status for all citizens which at the same time replaces most of the previous transfer payments. Many countries have already tested UBI in greatly simplified form or are currently planning to do so. Over the next few years, the “Stiftung Grundeinkommen” (Foundation Basic Income) wants to foster an independent examination of an UBI in Germany as an alternative to the existing system.

Methods

As a first step, a systematic literature review summarizes the current state of research. Here, the need for further research should be identified. Specifically, the literature review includes two modules:

1. Overview of the existing literature on the impact of the current basic income system (Hartz IV) in Germany.
2. Overview of the international literature.

Data and other sources

Overview of existing literature.