Do Welfare Dependent Neighbors Matter for Individual Welfare Dependency?

Thomas Bauer () and Rui Dang

No 848, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: This paper investigates neighborhood peer effects on individual welfare using a combined IV and control function approach. The empirical analysis is based on panel data for the years 2007-2010 constructed by enriching the geo-referenced version of the German Socio-Economic Panel (SOEP) with aggregated zip code level-information. The results suggest that individual welfare use is positively correlated with neighborhood social benefit recipient rates, i.e. an increase in the share of neighborhood peers on social benefit by 1 percentage point raises the individual probability of welfare use by 0.97 percentage points.

Pages: 10 p.
Date: 2016
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Do welfare dependent neighbors matter for individual welfare dependency? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp848

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