Die Höhe der sozialen Mindestsicherung – Eine Neuberechnung “bottom up” –

Abstract

The question how much money society should pay to persons without own income (i. e. the social minimum; in Germany called “Regelsatz”) has been debated extensively in Germany. A complicated procedure has been developed to derive the social minimum from the typical consumption of average lower income persons. Although the procedure as a whole is not unreasonable, it includes several standardised components which have been the cause of severe criticism and the reason for demands to raise the Regelsatz. The goal of this article is to determine the degree of consistency of the Regelsatz with the aims of the German social security system.We do not use the criticized “official” calculation procedure. Instead we start with the goals society has set to specify the social minimum. As these goals are formulated in an imprecise way we defined a “maximum case” and a “minimum case”. Then we deduce two baskets of goods consistent with those goals, respectively the two cases. Finally we determine the prices of all goods in the baskets using the actual cost of products in Germany. We find that the German Regelsatz is about 16 % above the amount consistent with the maximum case and is twice as high as the amount consistent with the minimum case.

Non-Take-Up of Means-Tested Social Benefits in Germany

“…However, this approach is highly subjective to the judgment of the experts who arrange the basket. Research by Thießen and Fischer [2008] and Hausstein [2015] on that topic enforce the issue that there is no "true need" because suggested adult benefit rates vary strongly between 132 and 734 euros per month. Hence, it is desirable to revise the Statistical Method and improve the consistency of the calculation process.…”

Social Jealousy and Stigma - Negative Externalities of Social Assistance Payments in Germany

“…In some constellations (in Europe, especially when the main earner is not well educated and many children are present in the household), the difference between full time wages from employment and SAP receipt (Lohnabstand ) is minimal (ISG, 2006) reducing incentives for work. Furthermore, there have been discussions in the public and the press about the absolute level of minimum existence, triggered by a controversial study that showed that as little as ¤132 2 but no more than ¤278 per month (excluding rent, heat and electricity payments) would be sufficient instead of the ¤347 that one would currently receive as a healthy single male SAP recipient (Thiessen and Fischer, 2008). They specifically cited that expenditure patterns for food, household items and clothing were very similar to that of the general population and in no way represented a minimum existence, but rather an average existence.…”