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

Joachim Wilde ()

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2003, vol. 223, issue 6, 719-742

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.

Keywords: Social assistance; incentives; opting out; probit; heteroscedasticity; Sozialhilfe; Anreizwirkung; Ausstieg; Probit-Modell; Heteroskedastie; Social assistance; incentives; opting out; probit; heteroscedasticity (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:223:y:2003:i:6:p:719-742

DOI: 10.1515/jbnst-2003-0606

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