Authors: Regina T Riphahn Christoph Wunder
Publish Date: 2015/07/23
Volume: 50, Issue: 4, Pages: 1303-1329
Abstract
We study state dependence in welfare receipt and investigate whether welfare transitions changed after a welfare reform Using data from the German SocioEconomic 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
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