Patterns of institutional change in minimum income protection in Sweden and Germany

Abstract

Germany is generally regarded as a case of qualitative “change” in minimum income protection (MIP) schemes, while Sweden is perceived as one of institutional “inertia”. This paper seeks to qualify this view by embedding developments in MIP in wider policy and governance trends. Empirically, it is based on document analysis and qualitative expert interviews in the two countries. Theoretically, the paper applies recent institutional approaches that address patterns of change in more complex ways. In Sweden, an exclusive focus on formal continuity regarding social assistance would disguise its change in function from temporary security system of last resort into one that permanently provides income protection when neighboring policy fields, unemployment and sickness insurance, are downsized. Conversely, in Germany a merger of social assistance and unemployment assistance took place. Yet an exclusive focus on the Hartz reforms would downplay the degree of continuity that nevertheless exists in the unemployment insurance.