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The Effects of the Means-tested Basic Income Support on the Behavior of Households - an Overview

Author

Listed:
  • Maximilian Joseph Blömer
  • Sebastian Link
  • Andreas Peichl
  • Marc Stöckli

Abstract

For some time now, there has been increasing public discussion of a fundamental reform of the social security system in Germany, with demands extending as far as the introduction of an unconditional basic income. On the one hand, numerous points of criticism of the existing system of basic benefits in Germany have been raised. One major reason for this is the interaction of various transfer payments, some of which pursue different distribution and incentive goals. On the other hand, globalization, digitalization, and technological progress present us with major challenges, but also new opportunities. The question arises whether the existing social system is equipped for this and can take advantage of new opportunities. At the same time, the literature has grown in recent years including numerous analyses of the impact of the Hartz reforms and other elements of the existing social system in Germany, as well as partly experimental studies of basic income concepts in other countries. This study provides an overview of the literature and the effects of means-tested basic income on household behavior.

Suggested Citation

  • Maximilian Joseph Blömer & Sebastian Link & Andreas Peichl & Marc Stöckli, 2021. "The Effects of the Means-tested Basic Income Support on the Behavior of Households - an Overview," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 120.
    • Handle: RePEc:ces:ifofob:120
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    File URL: https://www.ifo.de/DocDL/ifo_Forschungsberichte_120_Grundsicherung.pdf
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    References listed on IDEAS

    as
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    2. Felix Wellschmied, 2021. "The welfare effects of asset mean‐testing income support," Quantitative Economics, Econometric Society, vol. 12(1), pages 217-249, January.
    3. Jürgen Wiemers, 2015. "Endogenizing take-up of social assistance in a microsimulation model. A case study for Germany," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 4-27.
    4. Boockmann, Bernhard & Thomsen, Stephan L. & Walter, Thomas, 2009. "Intensifying the use of benefit sanctions: an effective tool to shorten welfare receipt and speed up transitions to employment?," ZEW Discussion Papers 09-072, ZEW - Leibniz Centre for European Economic Research.
    5. Wiemers, Jürgen, 2015. "Endogenizing take-up of social assistance in a microsimulation model : a case study for Germany," IAB-Discussion Paper 201520, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Stephen Whelan, 2010. "The take-up of means-tested income support," Empirical Economics, Springer, vol. 39(3), pages 847-875, December.
    7. Tschersich, Nikolai & Seifert, Hartmut & Herzog-Stein, Alexander & Gensicke, Miriam, 2010. "Einmal atypisch, immer atypisch beschäftigt? Mobilitätsprozesse atypischer und normaler Arbeitsverhältnisse im Vergleich," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 63(4), pages 179-187.
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    Cited by:

    1. Maximilian Joseph Blömer & Andreas Peichl, 2021. "Microsimulation of Different Variants of an Unconditional Basic Income in Germany," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 121.
    2. Maximilian Blömer & Clemens Fuest & Andreas Peichl, 2022. "Aus Hartz IV wird Bürgergeld — nur alter Wein in neuen Schläuchen? [From “Hartz IV” to “Bürgergeld” — Merely Old Wine in New Bottles?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(2), pages 78-81, February.

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