The employment effectiveness of minimum income schemes

Amilcar Moreira

in The activation dilemma

Published by Policy Press

Published in print June 2008 | ISBN: 9781847420466
Published online March 2012 | e-ISBN: 9781447303695 | DOI:
The employment effectiveness of minimum income schemes

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This chapter focuses on the employment effectiveness of minimum income schemes. Before discussing the analysis, the chapter first clarifies what is actually meant by employment effectiveness. Activation means a policy of combining negative and positive incentives to aid income support recipients to become self-sufficient through paid employment. This has implications for the measurement of employment effectiveness of minimum income schemes, in particular the treatment of subsidised work, which is deemed unrepresentative of fully self-sufficient forms of existence. In light of this, employment effectiveness, in this chapter, refers to the schemes's ability to place recipients in unsubsidised employment. After examining the schemes's respect for recipients' rights to personal development, the chapter then focuses on their employment effectiveness. It starts by looking at the percentage of minimum income recipients that made a transition to unsubsidised work. It also examines the schemes's marginal employment effectiveness, which is able to adjust the schemes's effectiveness to the existing labour market conditions. In conclusion, when labour market conditions are taken into account, TTK in Finland is the most effective scheme at putting recipients back into the labour market. In contrast, BSHG in Germany, especially after the introduction of the 1998 Social Code, and the RMI in France, are the least effective schemes.

Keywords: employment effectiveness; minimum income schemes; activation; income support; unsubsidised work; Finland

Chapter.  4611 words. 

Subjects: Social Stratification, Inequality, and Mobility

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