Endogenizing take-up of social assistance in a microsimulation model: a case study for Germany

Jürgen Wiemers
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Jürgen Wiemers: Institute for Employment Research (IAB), Nuremberg, Germany

No 201520, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Microsimulation studies typically assume that all entitlements to means-tested benefits are actually claimed by eligible households, despite a large body of research that suggests that take-up rates are substantially below 100%. The assumption of full take-up tends to exaggerate the simulated increase in caseloads and fiscal costs of a social policy reform. This paper investigates the impact of non-take-up for two hypothetical scenarios, namely increasing and decreasing the base amount of social assistance in Germany by EURO 100 per month. We find a substantial effect of considering non-take-up on the simulated change in fiscal costs and in particular on the change in caseloads, where the full take-up assumption exaggerates the latter change by a factor of about two." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Inanspruchnahme; Leistungsanspruch; leistungsberechtigte Arbeitslose; Simulation; Sozialgesetzbuch XII; Arbeitslosengeld II (search for similar items in EconPapers)
JEL-codes: C15 H31 I38 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015
New Economics Papers: this item is included in nep-cmp and nep-eur
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Citations: View citations in EconPapers (21)

Published in/as: The international journal of microsimulation, (2015), getr. Sz., http://www.microsimulation.org/IJM/V8_2/2_IJM_8_2_2015_Wiemers.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201520

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