Implementing the new basic allowance for job seekers in Germany Discussion Paper

The German labour market policy reforms that took effect in 2005 (in want of a concise and comprehensive terminology often technically referred to as ‘Hartz IV’) are not entirely straightforward and logical. As a result of compromise between the divergent majorities in the two legislative chambers at the time of law-making, they are being implemented in ways quite different from original intentions. This compromise is to temporarily balance irreconcilable principles stemming from different social policy traditions. In such a situation, it appears that only a critical analysis can yield a comprehensible explication. So it is not only because of the presumed independence of the host country expert but also because of instructive concerns if the following discussion paper is taking a critical perspective. By doing so, it is by no means intended to pre-empt scientific evaluations of the outcomes that have just come under way (cf. ISG 2006) or to take a negative stand against the fundamental intentions of the reform.

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