The first chapter examines the last series of the Hartz reform, Hartz IV, and verifies how people in the labor market react to this new system by analyzing changes in household savings. Notably, this new system was the highlight of Hartz reform in 2005 following Agenda 2010 and remarkably reduced the amount of social benefit that people in need could expect in case of hardship. Because of its radical change, it encountered strong resistance from people who were relying on benefits and changed the way German society perceives social security. With respect to this new scheme, how would people financially prepare themselves? By estimating the extent of preparation measured by the household saving rate, Chapter 1 attempts to answer this question. The last chapter moves its focus to young people and verifies how housing price after 2007 affects move-out behavior of young Germans from the parental home. It is widely known nowadays that young people, referred to as Millennials are suffering from financial concern much more than their previous generations. They tend to achieve their economic independence much later than earlier generations did, and that fact leads them to decisions over lifetime events such as moving out from the parental home, marriage, and childbirth for example. Concerning this issue, Chapter 3 notes the fact that housing market in Germany was substantially increased last decade. Although the rate of growth in house price is less steep compared to those in other developed countries, it was quite striking for Germans who have been accustomed to stable housing prices for decades. And of course, young people are the most vulnerable age group with respect to this change. What effect do housing costs have on young Germans wanting to set up a household? To what extent are housing costs important for young people in Germany? Chapter 3 navigates throughout these questions.
