One in five German households with children lives below the at-risk-of-poverty threshold. Germany’s current coalition agreement aims to strengthen families and lift children out of poverty. Against this background, the basic child allowance is currently under discussion. In the public debate, however, the long-term societal costs of child poverty are hardly ever compared with the costs of measures against child poverty. Yet, the costs are significant and occur in the areas such as health, education and social participation. Scenario analyses confirm that policy measures can be effective in reducing child poverty. Investing in children can therefore lead to substantial fiscal savings in the long run.
Inflation is having a significant impact on private households in Germany. Low-income households, in particular, are facing, in some cases, dramatic price increases for everyday consumer goods, which may threaten their very existence.
The packages of measures already adopted by the German government provide greater relief for lower-income households than for high-income households but are not sufficient to fully compensate for the burden of higher prices in the lowest income groups.
Against this background, Diakonie Deutschland e.V. proposes a crisis mechanism in the form of monthly payments of 100 euros per beneficiary:n for an initial period of 6 months. DIW Econ was commissioned by Diakonie Deutschland e.V. to study the effects of inflation and the effectiveness of its proposed crisis instrument.
The current study by DIW Econ, in cooperation with Prof. Dr. Claudia Kemfert, DIW Berlin, commissioned by the Bavarian SPD state parliamentary group, examines how the Free State of Bavaria can achieve a just transition into a emission neutral future. For this purpose, the study discusses specific social-ecological measures for the upcoming political reorientation in the sectors of energy, transport, buildings and industry.
The Hartz reforms of 2003 to 2005 are among the most far-reaching labour market reforms in recent German history. On the one hand, critics criticise the negative consequences of a large low-wage sector by European standards, in particular the fact that many workers remain in low-paid employment. On the other hand, supporters of the Hartz reforms see this as confirmation of successful activation policies.
Under the direction of DIW Econ Senior Research Associate Prof Dr Timm Bönke, DIW Econ is examining the impact of the activation policy aspects of the Hartz reforms on behalf of the Konrad Adenauer Foundation. Using data from the German Socio-Economic Panel (SOEP) and the Labour Market and Social Security Panel (PASS), they conducted extensive analyses of thousands of unemployment biographies of people who have managed to enter the labour market since the 2005 labour market reforms.
Around the turn of the millennium, the number of unemployed people in Germany increased significantly. As a result, the then Federal Government favoured the emergence of a relatively large low-wage sector through various labour market reforms.
Under the direction of Dr Markus M. Grabka, DIW Econ conducted a comprehensive analysis of the structure of the low-wage sector and the associated mobility dynamics based on data from the Socio-Economic Panel (SOEP).