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Income Support, (Un-)Employment and Well-Being

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

No 6016, CESifo Working Paper Series from CESifo Group Munich

Abstract: Using specific panel data of German welfare benefit recipients, we investigate the nonpecuniary life satisfaction effects of in-work benefits. Our empirical strategy combines difference-in-difference designs with synthetic control groups to analyze 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 norms (search for similar items in EconPapers)
JEL-codes: I31 I38 J60 J68 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Income support, (un-)employment and well-being (2016) Downloads
Working Paper: Income Support, (Un-)Employment and Well-Being (2016) Downloads
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