Income support, employment transitions and well-being

Clemens Hetschko, Ronnie Schöb and Tobias Wolf
Authors registered in the RePEc Author Service: Ronnie Schoeb

Labour Economics, 2020, vol. 66, issue C

Abstract: Using specific panel data of German welfare benefit recipients, we investigate the non-pecuniary life satisfaction effects of in-work benefits. Our empirical strategy combines difference-in-difference designs with synthetic control groups to analyse transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working makes people generally better off than being unemployed but employed welfare recipients do not reach the life satisfaction level of regular employees. This implies that welfare receipt entails non-compliance with the norm to make one's own living. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits.

Keywords: Life satisfaction; Subsidized employment; Unemployment; Income support; In-work benefits; Social identity; Social norms (search for similar items in EconPapers)
JEL-codes: I31 I38 J60 J68 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:66:y:2020:i:c:s0927537120300919

DOI: 10.1016/j.labeco.2020.101887

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