This project examines the results and possible consequences that the changes of the Danish income maintenance system has led to. The study will be based on the reform from 2010 and the subsequent amendments in 2015.
The significant changes of the reform from 2010, which was adopted by the political parties Venstre, Konservative, Dansk Folkeparti and Radikale Venstre, were a halving of the income maintenance period from four to two years and a doubling of the re-earning of income maintenance from half a year to a whole year. The subsequent amendments from 2015, which were made on the basis of recommendations from the income maintenance commission, meant that the requirement for re-earning the right to income maintenance was changed from days to hours. The purpose of this modification was to boost the incentives to take short-term work during the period of income maintenance.
The study will shed light on the economic results and incentives that the amendments of the income maintenance system has provided, as well as the possible long term consequences that the amendments could entail. The economic results and incentives will be analysed on the basis of the theories of behavioral economics and nudging. The possible long term consequences will be analysed on the basis of the theories about working poor and appreciation/acknowledgment. The analysis will provide an insight into the pros and cons of the changes of the income maintenance system, as to answer the question of whether the changes has been beneficial or detrimental to the Danish society and the unemployed Dane.
The study concludes that the amendments of the income maintenance system in 2010 and 2015, from a behavioral economic perspective, was an attempt to nudge the Danish recipient of income maintenance to search for employment more intensively throughout the income maintenance period by raising the economic incentives to take a job. However, this has not been a success as it has not led to income maintenance recipients reaching employment faster. However, the purpose of lowering government spendings on the income maintenance system is said to be achieved.
Furthermore the study concludes that the changes of the income maintenance system could lead to a long term negative development of working poor in Denmark. Moreover, it is pointed out that the changes could eventually lead to a negative development in the appreciation/acknowledgment of the unemployed Dane.
|Uddannelser||Socialvidenskab, (Bachelor/kandidatuddannelse) Bachelor|
|Udgivelsesdato||24 maj 2016|
|Vejledere||Kirstine Strøh Varming|