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

Regina Riphahn and Christoph Wunder ()
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Christoph Wunder: Martin-Luther University, Halle-Wittenberg

No 9035, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: unemployment benefit II; state dependence; social assistance; immigration; dynamic multinomial logit (search for similar items in EconPapers)
JEL-codes: I38 J61 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2015-05
New Economics Papers: this item is included in nep-dcm, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Empirical Economics, 2016, 50 (4), 1303-1329

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Related works:
Journal Article: State dependence in welfare receipt: transitions before and after a reform (2016)
Working Paper: State Dependence in Welfare Receipt: Transitions before and after a Reform (2015)
Working Paper: State Dependence in Welfare Receipt: Transitions Before and After a Reform (2013)
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