Economic Researchers advise against a Hartz IV increase. The result would be a lack of incentive to work.

Social tensions will increase, when the chances of immigrants in the labour market do not improve significantly .That is the warning of experts from the German Institute for Economic Research (DIW).We need a better education and training for immigrants. It would be counterproductive to increase Hartz IV rates and benefit II.

In Berlin, the immigrant share is not higher than in other large German cities. Because of the bad economy and high unemployment rate immigrant families are particularly more threatened. Thus, the unemployment of immigrants in the capital, just like in the other major German cities, is twice higher than in the rest of the population. Because the unemployment rate in Berlin is very high, above the national average, is also the unemployment of immigrants “dramatically” high. Any third is unemployed. Even more than 40 percent of immigrants from Turkey are unemployed.

The reason for the poor chances on the labour market is the insufficient training of most migrants. This applies particularly to persons with a Turkish background. 75 percent of them have no training qualification and only three percent have a university degree. Although there were also other immigrant groups with a high proportion without qualifications, but also a significant proportion of university graduates. In the eastern part of Berlin was the proportion of qualified workers, more than twice as large as in the western part of Berlin. The differences between East and West are due to the fact that the eastern part of Berlin during Germany’s division had no migration of guest workers. In the eastern districts were mostly immigrants from Eastern Europe, for example, by the states of the former Soviet Union.

The DIW experts advise against increasing the social benefits for the unemployed. Parents with two children receive already benefits, equal a full time sole wage earner earning 10 Euros in one hour. The vast majority of ordinary jobs in Berlin, however, is significantly lower paid. A further increase of the unemployment benefit II would not increase the incentive to find a job.

For the DIW experts are talking about economic and socio-psychological incentives. If you are able to rely on the state to maintain custody, there is the great danger that precisely the growing generation of families without good education arise no sufficient motivation to “invest” in their own training. Following generations naturally orientate to the parents. If they had succeeded in this, mostly living by state benefits to provide for themselves why should the younger generation not take them as role models.

The Senate must begin with the training, and not just training. We need even in school and in the early childhood education supportive measures. According to the experts it is much better for these children to help as early as possible, then giving the households more money.

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3 thoughts on “Economic Researchers advise against a Hartz IV increase. The result would be a lack of incentive to work.

  1. I agree with the economic researchers. I can´t see the reason why Hartz IV should be increased. The unemployed people will stay rather at home and receive their money from the government than take the initiative to find a job and work. So I also think that it is better to invest in education, or offer them other chances to enter the labour market, like the One-Euro-Job which was introduced a few year ago in Germany. But increasing of the unemployment benefit is not an option to get involved the unemployed people, especially the immigrants.
    But I just want to add also a comment to the statement that the reasons for the poor chances on the labour market is the insufficient training of most migrants which applies particularly to persons with a Turkish background. But even if we ( I have also a Turkish background:-)), have the qualification and sufficient training, we are just “unwanted” in Germany. It is really difficult to find a job. Most Turkish-Germans with university degrees see themselves as strangers in their country of birth. I have found an interesting article in Spiegel. “Highly qualified professionals of Turkish descent are leaving Germany because they feel denied opportunities there. In contrast other countries, particularly Turkey, are vying for their talents. Experts warn of the disastrous consequences of this “fatal” brain drain.”
    The reason is a kind of discrimination that makes us feel going back to our country from where we come….

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  2. I agree that an increase in the support with money without a decrease of the reason of unemployment didn´t make sense. An intensive training during the school which focused of the immigrants is from my point of view not necessary. I think that the schools from Berlin miss to give their students the information about the chances they have in the working live and how they can get this education and what they need to get this job. For students who have parents or friends in the job area they are interested in is it easier to start their career. But those who are missing this connections didn´t even know that this chance exists and follow as it was said in the article the example of their parents.

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  3. Why it is not considered that (with respects to the educational system) parents are not supported enough financially by the german government, and are therefore not able to send their children to higher education etc. If unemployment rates are higher under migrants, they will not have sufficient financial necessities, children wont be able to get a diploma and now the circle is round.
    In holland there are all sorts of financial programms designed to help the students (not even their parents) by offering them an amount of money (depending on parents’ income & if the student lives on its own etc) which is regarded as a loan until the student finishes university and has a diploma (deadline is within 10 years though) besides this we have studentloans and much more. This is another way of encouraging educational participation by the youth.

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