Welfare transitions before and after reforms of the German welfare system

Christoph Wunder and Regina Riphahn

VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association

Abstract: We study state dependence in the German welfare system and compare transition patterns before and after recent reforms of the welfare system (Hartz Reforms). Using data from the German Socio-Economic Panel, we apply dynamic multinomial logit estimators and find that welfare transitions have generally not changed significantly after the reform: the probabilities of welfare entry and welfare exit increased only slightly whereas the probability of welfare persistence declined somewhat. After the reform, welfare persistence and welfare-to-employment transitions of immigrants became more responsive to the labor market situation.

JEL-codes: C23 I38 J61 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc13:79715

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