Does Leaving Welfare Improve Health? Evidence for Germany

Michael Lechner, Conny Wunsch and Martin Huber

No 7421, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using exceptionally rich linked administrative and survey information on German welfare recipients we investigate the health effects of transitions from welfare to employment and of assignments to welfare-to-work programmes. Applying semi-parametric propensity score matching estimators we find that employment substantially increases (mental) health. The positive effects are mainly driven by males and individuals with bad initial health conditions and are largest for males with poor health. In contrast, the effects of welfare-to-work programmes, including subsidized jobs, are ambiguous and statistically insignificant for most outcomes. Robustness checks that include a semi-parametric instrumental variable approach do not provide reasons for concern.

Keywords: Health effects; Welfare programs (search for similar items in EconPapers)
JEL-codes: I10 I38 J68 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Does leaving welfare improve health? Evidence for Germany (2011)
Working Paper: Does Leaving Welfare Improve Health? Evidence for Germany (2009)
Working Paper: Does Leaving Welfare Improve Health? Evidence for Germany (2009)
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