Do welfare dependent neighbors matter for individual welfare dependency?

Thomas Bauer () and Rui Dang

No 606, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

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 (GSOEP) 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.

Keywords: Neighborhood effects; welfare use; non-random sorting (search for similar items in EconPapers)
JEL-codes: I38 R23 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/128631/1/848648161.pdf (application/pdf)

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:zbw:rwirep:606

DOI: 10.4419/86788703

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