Introduction

Abstract

This chapter introduces the idea of a basic income scheme reform for Germany. It also explains the different objectives of the doctoral thesis as well as its overall structure. The following work discusses and analyzes a new basic income scheme proposal for Germany that is implemented by a negative income tax. The scheme represents a reform of the current social assistance scheme so that it targets the group of employable individuals. The discussed reform option is developed with regard to the basic principles of the welfare state as well as to financial feasibility. It is then analyzed with respect to the effects on labor supply as well as on income poverty and income inequality in the German society. The quantification of allocation and distribution effects is important to identify the impact and sustainability of the reform proposal.