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Workfare: Möglichkeiten und Grenzen

  • Koch, Susanne

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Stephan, Gesine

    ()

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Walwei, Ulrich

    ()

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

"One of the most far-reaching proposals for reform in the field of labour market policy is to link the receipt of transfer payments in general to a 'service in return' from the recipient. This concept operates under the name of workfare. This paper examines the possibilities and limits of workfare in dealing with labour market problems. This includes the labour supply effects, the life satisfaction of welfare recipients and the balancing of the labour market taking into account the fiscal consequences. The paper shows that one fundamental premise for the effectiveness of a wide-ranging workfare does not apply without restriction. Empirical findings suggest that employment increases life satisfaction even when the income level is controlled for. Thus workfare need not have a 'deterrent effect'. Furthermore the labour-market-policy utility as an activation alternative is limited due to the possible risks of displacement. Nevertheless, elements of workfare definitely have a place in the context of a wide-ranging set of labour market policy instruments." (Author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200517.

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Length: 48 pages
Date of creation: 09 Aug 2005
Date of revision:
Publication status: published in: Zeitschrift für ArbeitsmarktForschung 38 (2005), p. 419-440
Handle: RePEc:iab:iabdpa:200517
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  1. Peter Dolton & Yvonne Balfour, 2002. "Der New Deal, "Welfare to Work"-Programme in Gro�britannien," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 3(2), pages 175-187, 05.
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  8. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Kombilohn oder Workfare? Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," IZA Discussion Papers 587, Institute for the Study of Labor (IZA).
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  10. Besley, Timothy & Coate, Stephen, 1992. "Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs," American Economic Review, American Economic Association, vol. 82(1), pages 249-61, March.
  11. Bruno S. Frey & Alois Stutzer, . "Maximising Happiness?," IEW - Working Papers 022, Institute for Empirical Research in Economics - University of Zurich.
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