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http://hdl.handle.net/10419/20718
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| Title: | | The Transition from Welfare to Work and the Role of Potential Labor Income  |
| Authors: | | Schneider, Hilmar Uhlendorff, Arne |
| Issue Date: | | 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 |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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