Transfer income is income that accrues to an economic object without economic consideration, such as housing benefit, social assistance (unemployment benefit II or Hartz IV), basic security or child benefit.
Transfer payments can not only be drawn from private households, but the state also receives transfer income in the form of taxes, levies and contributions. Companies receive transfer income when they are subsidized. These are largely paid out of primary income.
The aim of transfer income is a state redistribution policy. The aim is to compensate for injustices from the primary income distribution that arise from direct participation in economic activity.
Siehe auch: State transfers