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Education Card: Correct Response to the Decision on the Hartz IV Standard Rates?

Author

Listed:
  • Ursula von der Leyen
  • Christine Haderthauer
  • Gerd Landsberg
  • Axel Plünnecke
  • Holger Bonin

Abstract

In ist decision of 9 February 2010, the Federal Constitutional Court demanded a new design of the standard rates for basic social services for job seekers. In the future, the standard services for children and youths must no longer be derived from the services for grown-ups, but must be calculated independently, and children and youths have a legal right to educational support. Can an education card guarantee that the services actually benefit the children and youths? Ursula von der Leyen, Federal Minister for Labour and Social Affairs, explains the concept: "An electronic payment and settlement system does not promote learning, does not provide the warm meal in school and does not turn a loner into a team player at the sports club. But an electronic education card ensures unbureaucratic settlement. It is an instrument that brings the support directly to the child." And the education card may be adjusted flexibly to the community structures. Christine Haderthauer, Bavarian State Minister for Labour and Social Affairs, Family and Women, contradicts this view. For her a bonus card does not help "our country in terms of family policy because it can lead to a division of families. It could dig a trench between those who are able to care for their children free and responsibly and those who are stigmatised by a chip card system as "black sheep" who are unable to deal with money." Gerd Landsberg, German City and Community Association, explains the Association's recommendation. Accordingly, the specifications of the Federal Constitutional Court regarding the Hartz-IV standard rates for children ought not be met by more money, but by so-called participation packages similar to the education card proposed by the Federal Labour Minister von der Leyen. The legislative ought to focus on the task to evaluate and meet the needs of the children, especially their participation in school life and social life. Axel Plünnecke, Institute of German Business Research, Cologne, also sees the advantages of the education card: "Financial transfers help children with special support needs less than promotional and explanatory measures. That is why the set-up of such a support infrastructure (family midwives, family centres, day nurseries) is important. The education card complements this build-up of infrastructure and makes for a correct implementation of the decision of the Constitutional Court." For Holger Bonin, Centre for European Economic Research, Mannheim, the education card is basically the correct approach. With the aim to promote the cognitive and non-cognitive development of children from disadvantaged, underprivileged homes it appears to be an element of an imminent social paradigm change.

Suggested Citation

  • Ursula von der Leyen & Christine Haderthauer & Gerd Landsberg & Axel Plünnecke & Holger Bonin, 2010. "Education Card: Correct Response to the Decision on the Hartz IV Standard Rates?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(18), pages 03-17, September.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:18:p:03-17
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    References listed on IDEAS

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    1. Anger, Christina & Plünnecke, Axel & Seyda, Susanne, 2006. "Bildungsarmut und Humankapitalschwäche in Deutschland," IW-Analysen, Institut der deutschen Wirtschaft (IW) / German Economic Institute, volume 18, number 18.
    2. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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