State Dependence in Welfare Receipt: Transitions Before and After a Reform

Arbeitspapier

We study state dependence in welfare receipt and investigate whether welfare transitions changed after a welfare reform. Using data from the German Socio-Economic Panel, we apply dynamic multinomial logit estimators and find that state dependence in welfare receipt is not a central feature of the German welfare system. We find that welfare transitions changed after the reform: transitions from welfare to employment became more likely and persistence in welfare and inactivity declined. We observe a large relative increase in transitions from employment to welfare. Immigrants' responsiveness to the labor market situation increased after the reform.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4485

Classification and Topics

• Classification: Wirtschaft ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Geographic Labor Mobility; Immigrant Workers
• Subject: social assistance ; state dependence ; unemployment benefit II ; immigration ; dynamic multinomial logit

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Riphahn, Regina T. ; Wunder, Christoph
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/89686
• Last update: 10.03.2025, 11:43 AM CET