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Was reizt Sozial hi Ifeempfänger zum Ausstieg?. Eine empirische Untersuchung mit dem Niedrigeinkommens-Panel / Why do Recipients of German Social Assistance Opt Out?. An Empirical Investigation of Incentives with the Low Income Panel

Author

Listed:
  • Wilde Joachim

    () (Wirtschaftswissenschaftliche Fakultät, Große Steinstr. 73, D-06099 Halle)

Abstract

The high number of recipients of social assistance in Germany is often explained by the thesis that taking up an employment does not pay financially. Therefore, the recipients would remain in social assistance voluntarily ("poverty trap"). Using panel data for households with low income, the study examines whether this thesis and its assumptions are valid or not. Additionally, further kinds of incentives are taken into account. It is shown that the current structure of the financial incentives influences the decision of the recipients much less than it is assumed. In contrast to this, the behavior of the employees of the social welfare office influences the probability of leaving social assistance significantly. Therefore, a reform of the German system of social assistance should not only focus on financial incentives.

Suggested Citation

  • Wilde Joachim, 2003. "Was reizt Sozial hi Ifeempfänger zum Ausstieg?. Eine empirische Untersuchung mit dem Niedrigeinkommens-Panel / Why do Recipients of German Social Assistance Opt Out?. An Empirical Investigation of Inc," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(6), pages 719-742, December.
  • Handle: RePEc:jns:jbstat:v:223:y:2003:i:6:p:719-742
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    References listed on IDEAS

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    1. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    2. Fuest Clemens & Riphahn Regina, 2001. "Is the Local Business Tax a User Tax? An Empirical Investigation for Germany / Ist die Gewerbesteuer eine Äquivalenzsteuer? Eine empirische Analyse für Deutschland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(1), pages 14-31, February.
    3. Gourieroux,Christian & Monfort,Alain, 1995. "Statistics and Econometric Models," Cambridge Books, Cambridge University Press, number 9780521471626, May.
    4. Davidson, Russell & MacKinnon, James G., 1984. "Convenient specification tests for logit and probit models," Journal of Econometrics, Elsevier, vol. 25(3), pages 241-262, July.
    5. 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.
    6. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Aktivierende Sozialhilfe - Ein Weg zu mehr Beschäftigung und Wachstum," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, May.
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