February 9, 2020
U of T-affiliated study results could have implications for social welfare in Ontario
One of the most drastic changes to Germany’s welfare system, the 2005 Hartz IV reform, worsened health outcomes among unemployed people, according to a U of T-affiliated research study.
This specific reform in Germany’s welfare policies affected unemployed Germans who received needs-based unemployment assistance. Prior to 2005, this financial assistance amounted to 57 per cent of the recipient’s previous earnings. After the Hartz IV reform, however, the German government replaced these percentage-based payments with a flat-rate of 424 euros every month, cutting the average recipient’s benefits by 25 per cent.