Arbeitslosigkeit, Zuwanderung und Sozialhilfe: Eine Analyse der Determinanten und der Finanzierung der Sozialhilfeausgaben

Helmut Seitz and Claudia Kurz

FinanzArchiv: Public Finance Analysis, 1999, vol. 56, issue 3/4, 518-

Abstract: In West Germany, social assistance expenditures increased by about 240% in the period 1980 to 1996 whereas total public expenditures increased by only about 80%. The paper examines the determinants as well as the financing of social assistance expenditures using a cross section of the West German Länder. In accordance to studies using individual data we identify unemployment as the main source of the increase of these expenditures. The massive immigration of asylum-seekers to Germany is found to be another important determinant of the increase of social assistance payments. In a further section we present a simple intertemporal model of government expenditure decisions and evaluate the relation between transfer payments and the supply of public goods. The empirical evidence shows that in the short run an increase in social assistance expenditures is partly deficit financed whereas in the long run particularily capital outlays, notably infrastructure expenditures, are cut to finance transfers.

Date: 1999
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