Employment and Unemployment Benefit II: Who are the employed benefit recipients, and what are their chances to end benefit receipt?

Abstract

"According to the statistics of the Federal Employment Agency, there were about one million employed persons in Germany in recent years who receive additional Unemployment Benefit II (UB II) in order to cover the needs of their household. This corresponds to a share of 26 percent of all benefit recipients in 2019. In recent years, the share as well as the number of employed benefit recipients have decreased. This report takes a differentiated look at the employment and household situation of those employed benefit recipients. First of all, the impact of socio-demographic, regional, household and employment-related characteristics is analysed. In a longitudinal perspective we examine whether and how households can leave welfare benefit receipt. In general, those living in households with children have a higher probability to receive UB II in addition to an employment while additional employed household member decrease this probability. In addition, marginal employment, a reduced working time and low hourly wages are not only very common among working benefit recipients but also increase the probability to additionally claim welfare benefits substantially. The cumulation of a low wage and marginal or part-time employment is of a particular relevance. Socio-demographic characteristics are also associated (but less strongly) with an employment that requires an additional receipt of benefits: persons with a low qualification, a migration background, those living in eastern Germany. The chances to end benefit receipt while remaining employed is determined to a great extent by increasing hourly wages or working hours. Changes in household composition are not very common in our sample. Observed changes, like a new partner or an additional employment of household members, increase the chance to leave benefit receipt while more children decrease these changes." (Author's abstract, IAB-Doku) ((en))

Cite article

Lietzmann, T. & Wenzig, C. (2021): Erwerbstätigkeit und Grundsicherungsbezug. Wer sind die Aufstocker:innen und wie gelingt der Ausstieg? Gütersloh, 91 p. DOI:10.11586/2021118