Chapter

Germany: moving towards integration whilst maintaining segmentation

Irene Dingeldey

in Regulating the Risk of Unemployment

Published in print October 2011 | ISBN: 9780199592296
Published online January 2012 | e-ISBN: 9780191731471 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199592296.003.0004
Germany: moving towards integration whilst maintaining segmentation

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The German case study confirms the trend of integration. Benefit homogenization occurred as a three-tier support system was replaced by a two-tier system, covering the vast majority of jobless benefit claimants by the newly created, tax-financed, and flat-rate unemployment benefit II. A process of risk re-categorization can be identified as the new benefit which includes all those people in working age being considered as ‘capable to work’ – and not covered by the insurance system. Within both benefit systems the link between entitlement, job search requirement, and other activation conditions has been reinforced. However, major differences between the two tiers of unemployment protection have been maintained with respect to benefit levels, work requirements, and activation options. Alongside an increasing casualization of employment relationships, this has resulted in an even more pronounced segmentation within the German labour market.

Keywords: Germany; unemployment protection; activation; labour market reform; integration; segmentation

Chapter.  8442 words.  Illustrated.

Subjects: Political Economy

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