Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/110762 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 9035
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
social assistance
state dependence
unemployment benefit II
immigration
dynamic multinomial logit
JEL: 
I38
J61
Document Type: 
Working Paper

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