How Family Transfers Crowd-out Social Assistance in Germany

Edwin Fourrier-Nicolaï

No 2023, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: The non-take-up of social assistance has been receiving increased attention among policy makers in recent years as it would apparently underpin the effectiveness of public intervention in alleviating poverty. We examine whether receipt of private transfers affects the household decision to take-up social assistance in Germany between 2009 and 2011. We exploit the follow-up of households in the SOEP to reconstruct family links and estimate a model of welfare participation with endogenous private transfers and sample selection of the instruments. We find that 20% of the non-take-up rate is due to monetary substitution of private transfers lowering the welfare program costs. However, we find that social assistance is more effective in alleviating poverty and its intensity than private transfers.

Keywords: welfare participation; private transfers; family networks (search for similar items in EconPapers)
JEL-codes: D31 D64 I38 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2020-06
New Economics Papers: this item is included in nep-dem
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... /wp_2020_-_nr_23.pdf (application/pdf)

Related works:
Working Paper: How Family Transfers Crowd-out Social Assistance in Germany (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:2023

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu (gregory.cornu@univ-amu.fr).