State Dependence in Welfare Receipt: Transitions Before and After a Reform

Regina Riphahn and Christoph Wunder

No 4485, CESifo Working Paper Series from CESifo

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: 2013
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: State dependence in welfare receipt: transitions before and after a reform (2016)
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)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4485

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