Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?
Year: 2005
Author: Schneider, Hilmar, Uhlendorff, Arne
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 51–61
Abstract
lt is often argued that the high level of welfare claims in Germany creates little incentive for workers with low productivity to seek for ajob. We examine the influence of the ratio between estimated potential labor income and the welfare payment level on the probability of leaving social welfare. We estimate a discrete time hazard rate model with unobserved heterogeneity using representative micro data from the German SocioEconomic Panel Study (SOEP). 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.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.125.1.51
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 51–61
Published online: 2005-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 11
Author Details
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