ABSTRACT
Over the last 10-15 years, the future of the welfare state and the various options for reforming social security systems have become permanent features of academic and political debate in practically all western industrialised countries. In Germany, high and persistent unemployment means that the reform of the social security system for the unemployed is of particular interest. Along with a wide range of active labour market policies this system at present chiefly comprises three types of wage substitution payments (= passive labour market policies): full-rate unemployment benefit (Arbeitslosengeld), means-tested unemployment be ne fit (Arbeitslosenhilfe) and public welfare transfers (Sozialhilfe) to the unemployed l .
