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A New Targeting - A New Take-Up?: Non-take-up of Social Assistance in Germany after Social Policy Reforms

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  • Kerstin Bruckmeier
  • Jürgen Wiemers
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    Abstract

    We present first estimates of rates of non-take-up for social assistance in Germany after the implementation of major social policy reforms in 2005. The analysis is based on a microsimulation model, which includes a detailed description of the German social assistance programme. Our findings suggest a moderate decrease in non-takeup compared to estimates before the reform. In order to identify the determinants of claiming social assistance, we estimate a model of take-up behaviour which considers potential endogeneity of the benefit level. The estimations reveal that the degree of needs, measured as the social assistance benefit level a household is eligible for, and the expected duration of eligibility are the key determinants of the take-up decision, while costs of claiming seem to play a minor role.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.356279.de/diw_sp0294.pdf
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    Bibliographic Info

    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 294.

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    Length: 24 p.
    Date of creation: 2010
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    Handle: RePEc:diw:diwsop:diw_sp294

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    Keywords: Non-Take-Up; social assistance; microsimulation;

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    References

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    1. Keith Finlay & Leandro M. Magnusson, 2009. "Implementing Weak Instrument Robust Tests for a General Class of Instrumental Variables Models," Working Papers 0901, Tulane University, Department of Economics.
    2. John P. Haisken-DeNew & Christoph M. Schmidt, 2009. "Nickel and Dimed German Style: The Working Poor in Germany," Ruhr Economic Papers 0122, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Hilke Almut Kayser & Joachim R. Frick, 2000. "Take It or Leave It: (Non-) Take-up Behavior of Social Assistance in Germany," Discussion Papers of DIW Berlin 210, DIW Berlin, German Institute for Economic Research.
    4. Joachim R. Frick & Olaf Groh-Samberg, 2007. "To Claim or Not to Claim: Estimating Non-take-up of Social Assistance in Germany and the Role of Measurement Error," SOEPpapers on Multidisciplinary Panel Data Research 53, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
    6. Riphahn, Regina T., 2000. "Rational Poverty or Poor Rationality? The Take-up of Social Assistance Benefits," IZA Discussion Papers 124, Institute for the Study of Labor (IZA).
    7. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
    9. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    10. Francesca Zantomio & Stephen Pudney & Ruth Hancock, 2010. "Estimating the Impact of a Policy Reform on Benefit Take-up: The 2001 extension to the Minimum Income Guarantee for UK Pensioners," Economica, London School of Economics and Political Science, vol. 77(306), pages 234-254, 04.
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