Labour Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighbourhood Characteristics

Jan van Ours and Bas van der Klaauw

No 2362, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper investigates how in addition to personal characteristics the neighbourhood affects the individual transition rate from welfare to work. We use a unique administrative database on welfare recipients in Rotterdam, the second largest city of The Netherlands. We find that the exit rate to work of young Dutch welfare recipients is influenced by the neighbourhood unemployment rate. Other neighbourhood characteristics such as the average housing price are not important. From this we conclude that for young Dutch welfare recipients a high local unemployment rate has a negative spillover effect on the transition from welfare to work.

Keywords: Spillovers; Unemployment duration; Welfare to work (search for similar items in EconPapers)
JEL-codes: C41 J61 J64 R23 (search for similar items in EconPapers)
Date: 2000-01
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Working Paper: Labor Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighborhood Characteristics (2000)
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