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Does Social Interaction Matter for Welfare Participation?

Sylvain Chareyron, Patrick Domingues and Lucie Fotsa Lieno-Gaillardon

Annals of Economics and Statistics, 2021, issue 141, 49-70

Abstract: The literature indicates that a portion of households eligible for social assistance either does not claim it or does not receive it, thus reducing the efficiency of these programmes. Using French data, we estimate how the change in the share of neighbours that are welfare recipients at the beginning of the period of analysis affects the change in welfare participation. We find that peer-effects significantly influence the probability of receiving income support programme. We also show that when the eligibility status is not taken into account, social interaction effects are underestimated

Keywords: Neighbourhood Effects; Social Interactions; Welfare Participation. (search for similar items in EconPapers)
JEL-codes: D62 H55 I38 (search for similar items in EconPapers)
Date: 2021
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Working Paper: Does social interaction matter for welfare participation? (2018)
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DOI: 10.15609/annaeconstat2009.141.0049

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