State dependence in welfare receipt: transitions before and after a reform

Regina Riphahn and Christoph Wunder
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Christoph Wunder: University of Halle-Wittenberg

Empirical Economics, 2016, vol. 50, issue 4, No 7, 1303-1329

Abstract: 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: Social assistance; State dependence; Unemployment benefit II; Immigration; Dynamic multinomial logit (search for similar items in EconPapers)
JEL-codes: I38 J61 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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Related works:
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 (2015)
Working Paper: State Dependence in Welfare Receipt: Transitions Before and After a Reform (2013)
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DOI: 10.1007/s00181-015-0977-0

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