3 years of means-tested minimum income: implications for recipients’ re-entry into the employment market

Implementation of the means-tested minimum income scheme has been finalised in all federal states for three years, since October 1, 2011. Among its primary aims have been the harmonisation of the most important regulatory areas of extramural social assistance, obligatory insurance for recipients of means-tested minimum income who do not have health insurance, and a stronger labour market attachment of recipients who are capable of work. This is ensured, for instance, by providing equal access to the services of the Public Employment Service for all the persons in question.

A first study has explored the implications that the introduction of the means-tested minimum income scheme has had on the re-entry of its recipients into the employment market. However, the follow-up observation period of this study, of 9 months maximum, was relatively short and it was not possible to include all the federal states in the observation.

The study which is now being offered provides the possibility to include the aspect of sustainability, e.g. by determining longer follow-up observation periods for the longitudinal analyses. Analyses were conducted of combined measures, continuity of employment and the employment sectors which are entered. In addition, the distribution between entry into the primary and secondary employment markets was studied.