Search

This paper advocates the cautious and constitutional evolution of existing basic income schemes ("unemployment benefit II") and Targeted Negative Income Tax (TNIT = "Einstiegsgeld") into a means-tested combi-wage model for the future long-term unemployed (gradualism strategy). The paper argues that, with regard to existing unemployment benefit II claimants, stronger financial incentives should be offered on a time restricted basis by largely disregarding (up to the relative poverty line) earnings from "mini", "midi" and part-time jobs - with the aim of providing current unemployment II claimants with a powerful incentive to work at least 15 hours a week and thus to relinquish their unemployed status. Bearing in mind the uncertain employment impact and the related fiscal risks, the paper advises against additional financial incentives by reducing support levels from one day to the next (cold turkey strategy).

The number of long-term unemployed in Germany has stagnated at around one million for several years. Despite excellent labour market conditions, the long-term unemployment rate is well above the OECD average. Therefore, the "carrot and stick" principle of Hartz reforms is in clear need of further development. The author proposes an overall concept for preventing and reducing long-term unemployment and long-term basic income receipt. An important element is an activation strategy for long-term unemployed and long-term basic income recipients that implies interim target setting and requires more and better trained case managers in the job centres.

Against the background of increasing cost pressures and a deficit of the legal long term care insurance of 400 Mio. Euro in 2002, the Rürup-Commission considers personal nursing care budgets as one possible avenue amongst others to reform the legal long term care insurance. Unlike non-cash benefits, personal budgets enable long term care patients to realize an individually tailored home care arrangement by buying the desired care services. By implementing personal budgets, the Commission expects an increasing cost effectiveness of the long term care insurance due to higher quality nursing care at a given cost level. The aim of this article is to review the existing approaches concerning the implementation of personal budgets in the national and international context. After a theoretical discussion of the budget for nursing care, the article focuses on the requisites for a successful testing of a personal budget in the German context. Based on these insights, this article develops a research agenda for a comprehensive evaluation of personal budgets in Germany and recommends a social experiment with a randomized control group as the preferable evaluation design. Moreover, conducting such experiments in different communities allows for an identification of indirect effects in the complete system of the long term care provision.