The expansion of low wages has sparked a debate about the working poor in Germany. However, unemployment remains the most significant reason for becoming or remaining poor. (Re)integration of unemployed people into the labour market has therefore been the policy priority. Since reforms in 2005, more employed people have received supplementary welfare benefits and some people starting work may still receive the lower level of unemployment benefit.
Judith Niehues / Maximilian Stockhausen IW-Trends No. 2 16. May 2022
A Focus on the Middle Class - Demarcation, Development and Mobility
In 2018, roughly every second German was a member of the middle class as measured by income, a proportion which has barely changed for more than a decade. However, the lower income threshold of this middle-income group has risen - an indication of increased ...
Christoph Schröder / Christian Kestermann IW-Trends No. 2 16. June 2020
The Minimum Wage and Income Poverty
There are currently loud calls for an increase in the minimum wage to 12 euros to ensure that it adequately covers the cost of living. However, the net income of a single person working full-time at the present minimum wage is already very close to the ...
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German Economic Institute (IW) 
