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Cover of: Welfare to Work in the U. S.: A Model for Germany?
Wolfgang Ochel

Welfare to Work in the U. S.: A Model for Germany?

Section: Articles
Volume 59 (2003) / Issue 1, pp. 91-119 (29)
Published 09.07.2018
DOI 10.1628/0015221032906144
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  • 10.1628/0015221032906144
Summary
Social assistance in Germany reduces the incentive to work. The U.S. Welfare to Work Programme tries to avoid such disincentives. It consists essentially of two elements: the Earned Income Tax Credit (EITC) for employees in low-wage occupations and a Workfare model. The EITC and the Workfare model as implemented in the State of Wisconsin are described and analyzed. In conclusion, the introduction of an EITC and a workfare approach in Germany is recommended.