Rehabilitation Through Work? Disability and the Productivist Road to Participation in the East of Germany1

Abstract Drawing on secondary data and interviews, this paper traces the economic and socio‐cultural roots of contemporary policies to promote full participation of people with disabilities in mainstream German society. Underlying such policies and related practices has been a concept of rehabilitation through work that evolved within a context of labour shortages, Protestant work ethics, and German welfarism at the beginning of the 20^th century and that has yielded rather ambiguous consequences. I argue this elective affinity among economic, cultural, and socio‐political imperatives has undermined potentials for integration and self‐actualization of people with disabilities. Not only was rehabilitation subordinated to a productivist logic and provoked forms of ill‐paid or even forced labour; rehabilitation policies and measures have also been part of a system of social governance that effectively helped to segregate the “able” from the “unable” and that promulgated an ethos of productivism. Significantly, this essentially utilitarian ethos – which rendered health and rehabilitation into a social obligation and valued each wo/man according to his/her fitness and motivation to contribute to socio‐economic development – evolved within capitalism but was equally pronounced in East Germany under state‐socialist rule. Contrary to the egalitarian principles of both “socialist humanism” and “Western enlightenment”, policies and practices trans‐societally focussed on the promotion of those who could – potentially at least – contribute to the regime of industrial production. As the example of East Germany demonstrates, social participation through paid work remains incomplete, at best, and provokes further segregation – even in times of severe labour shortages. The paper concludes that notwithstanding contemporary rhetoric, rehabilitation through work has remained a central pillar of contemporary welfare policies. In times of unbroken structural unemployment, the productivist paradigm and ensuing policies have become increasingly problematic – not only for the inclusion of people with disabilities. Experiences with the productivist modes of participation and with rehabilitation in East Germany suggest a post‐productivist paradigm of inclusion that seeks participation beyond paid work.     

Goodness‐of‐Fit based on Downsampling with Applications to Linear Drift Diffusions

Abstract. A goodness‐of‐fit test for continuous‐time models is developed that examines if the parameter estimates are consistent with another for different sampling frequencies. The test compares parameter estimates obtained from estimating functions for downsamples of the data. We prove asymptotic results for stationary and ergodic processes, and apply the downsampling test to linear drift diffusions. Simulations indicate that the test is quite powerful in detecting non‐Markovian deviations from the linear drift diffusions.     

VOTING FOR INCOME‐IMMISERIZING REDISTRIBUTION IN THE MELTZER–RICHARD MODEL

This paper argues that income received via redistributive transfers, unlike labor income, requires no direct sacrifice of leisure; this makes it attractive to many voters even if it leaves them poorer. This point is made within the classic Meltzer and Richard (1981) model wherein heterogeneous voters evaluate an income‐redistribution program that finances a lump‐sum transfer to all via a distorting income tax. The political‐equilibrium policy under majority rule is the tax most preferred, utility‐wise, by the median voter. Ironically, this voter, and many poorer voters, may support a redistribution policy that leaves them poorer in income terms but with higher utility. (JEL H2, E6, D72)