Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192485 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
Discussion Papers No. 503
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper studies how changes in welfare benefit levels affect welfare recipients' residential choices. Although several empirical studies have stressed that welfare policy may affect residential choices of welfare recipients, few studies have simultaneously taken into account that residential choices of welfare recipients also affect welfare policy. The main contribution of this paper is to address this policy endogeneity by utilizing a policy reform as a natural experiment. The results show that welfare policy exerts a nontrivial effect on residential choices of welfare recipients. Moreover, I show that ignoring the policy endogeneity may give rise to a downward bias in the estimated migration responses.
Subjects: 
Welfare Benefits
Migration
Policy Endogeneity
JEL: 
I38
H73
H77
R23
Document Type: 
Working Paper

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