Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20718
Authors: 
Schneider, Hilmar
Uhlendorff, Arne
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1420
Abstract: 
It is often argued that the high level of welfare claims in Germany causes little incentive for workers with low productivity to seek for a job. We examine the influence of the ratio between estimated potential labor income and the welfare payment level on the probability of leaving social welfare. Using the GSOEP, we estimate a discrete time hazard rate model with competing risks and unobserved heterogeneity. Our results show that the ratio has a positive effect on the probability of leaving social welfare. This effect is especially relevant for households with a potential labor income higher than their welfare payment level.
Subjects: 
social welfare
labor supply
duration analysis
JEL: 
C41
J64
I38
Document Type: 
Working Paper

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