The ifo proposal for reforming the welfare system - additional results

During the past months, a debate about the need of reforms in the German benefit system especially in case of Harz IV has intensified. The ifo Institute has made a reform proposal, which aims to improve the employment incentives of the German benefit system. The proposed reform reduces disincentives which prevent the recipients from achieving higher incomes and alleviates lock-in effects to transfers. This research report provides complementing illustrations and calculations.