 Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?Hilmar Schneider () and Arne Uhlendorff Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, 2005, vol. 125, issue 1, 51-61 Abstract: It is often argued that the high level of welfare claims in Germany creates little incentive for workers with low productivity to seek for a job. We examine the influence of the ratio between estimated potential labor income and the welfare payment level on the probability of leaving social welfare. We estimate a discrete time hazard rate model with unobserved heterogeneity using representative micro data from the German Socio-Economic Panel Study (SOEP). Our results show that the ratio has a positive effect on the probability of leaving social welfare. This effect is especially relevant for households with a potential labor income higher than their welfare payment level. JEL-codes: C41 I38 J64 (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aeq:aeqsjb:v125_y2005_i1_q1_p51-61 Ordering information: This journal article can be ordered from Access Statistics for this article Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften is currently edited by Gert G. Wagner and Joachim Wagner More articles in Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften from Duncker & Humblot, Berlin |
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