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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

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  • 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 Incentives with the Low Income Panel," 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
    DOI: 10.1515/jbnst-2003-0606
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    References listed on IDEAS

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