Arbeitspapier

State Dependence in Welfare Benefits in a Non-Welfare Context

This study contributes to the ongoing debate about welfare dependency centered on the western societies through an empirical analysis, within the context of a developing country. It examines state dependence in social assistance benefit receipt using longitudinal data from Turkey, where benefit receipt and persistence rates have witnessed a significant increase since the last decade. Identification is achieved by dynamic random effects probit models, controlling for unobserved heterogeneity and endogenous initial conditions. Particularly, Wooldridge's (2005) estimator and its extensions are applied for achieving consistent and correct estimates of state dependence. In order to check for sensitivity, the results are compared with the results from Heckman's (1981) reduced form approach. Both estimators enable us to deal with the potential bias due to the short panel length. It is found that the benefit receipt of the last year increases the likelihood of benefit receipt in the current year by 17 to 22 percentage points. This evidence suggests that state dependence in social assistance might also be a relevant phenomenon for developing countries.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 9551

Klassifikation
Wirtschaft
Welfare, Well-Being, and Poverty: General
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Demographic Economics: Public Policy
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Thema
social assistance benefits
state dependence
endogenous initial conditions
dynamic random effects models

Ereignis
Geistige Schöpfung
(wer)
Ayhan, Sinem H.
Pelek, Selin
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ayhan, Sinem H.
  • Pelek, Selin
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2015

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