On Monday, Clemens Fuest, director of the Ifo Institute, spoke to the German broadcaster “Welt” about the debate over “lifestyle part‑time” work. He agreed with criticism from MIT chief Gitta Connemann that many people choose part time because it feels more rewarding than the alternative. Fuest said, “That is a reasonable proposal” but warned that “it is also a secondary battleground”.
Fuest emphasized that the real issue is the lack of incentive to work longer hours. He explained that Germany’s social system has become so generous that for many workers it is no longer worthwhile to earn more. “Consequently a large number of people slide back into part‑time” he noted. “We need to make it so that earning between €3,000 and €5,000 monthly actually pays off”. He added that higher earnings should translate into higher net pay, not just higher gross wages.
According to Fuest, the solution lies in reforming the social assistance system. “Many people still receive housing allowance; when they earn a bit more they lose that support, leaving them with no extra money in the pocket” he said. “This is the main reason why so many move into part‑time. That system must be restructured”.