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Does Social Interaction Matter for Welfare Participation?

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  • Sylvain Chareyron
  • Patrick Domingues
  • Lucie Fotsa Lieno-Gaillardon

Abstract

The literature indicates that a portion of households eligible for social assistance either does not claim it or does not receive it, thus reducing the efficiency of these programmes. Using French data, we estimate how the change in the share of neighbours that are welfare recipients at the beginning of the period of analysis affects the change in welfare participation. We find that peer-effects significantly influence the probability of receiving income support programme. We also show that when the eligibility status is not taken into account, social interaction effects are underestimated

Suggested Citation

  • Sylvain Chareyron & Patrick Domingues & Lucie Fotsa Lieno-Gaillardon, 2021. "Does Social Interaction Matter for Welfare Participation?," Annals of Economics and Statistics, GENES, issue 141, pages 49-70.
    • Handle: RePEc:adr:anecst:y:2021:i:141:p:49-70
    DOI: https://doi.org/10.15609/annaeconstat2009.141.0049
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    More about this item

    Keywords

    Neighbourhood Effects; Social Interactions; Welfare Participation.;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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