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The activation dilemmaReconciling the fairness and effectiveness of minimum income schemes in Europe$
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Amilcar Moreira

Print publication date: 2008

Print ISBN-13: 9781847420466

Published to Policy Press Scholarship Online: March 2012

DOI: 10.1332/policypress/9781847420466.001.0001

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The employment effectiveness of minimum income schemes

The employment effectiveness of minimum income schemes

(p.84) (p.85) Six The employment effectiveness of minimum income schemes
The activation dilemma

Amilcar Moreira

Policy Press

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

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