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Does leaving welfare improve health? Evidence for Germany

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  • Martin Huber
  • Michael Lechner
  • Conny Wunsch

Abstract

Using exceptionally rich linked administrative and survey information on German welfare recipients we investigate the health effects of transitions from welfare to employment and of assignments to welfare-to‐work programmes. Applying semi‐parametric propensity score matching estimators we find that employment substantially increases (mental) health. The positive effects are mainly driven by males and individuals with bad initial health conditions and are largest for males with poor health. In contrast, the effects of welfare‐to‐work programmes, including subsidised jobs, are ambiguous and statistically insignificant for most outcomes. Copyright (C) 2010 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1615
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 20 (2011)
Issue (Month): 4 (April)
Pages: 484-504

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Handle: RePEc:wly:hlthec:v:20:y:2011:i:4:p:484-504

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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Keywords: welfare programmes ; health effects ;

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References

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  1. Michael Lechner & Ruth Miquel & Conny Wunsch, 2004. "Long-run Effects of Public Sector Sponsored Training in West Germany," University of St. Gallen Department of Economics working paper series 2004 2004-19, Department of Economics, University of St. Gallen.
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Citations

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Cited by:
  1. Eggs, Johannes, 2013. "Unemployment benefit II, unemployment and health," IAB Discussion Paper 201312, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees," IZA Discussion Papers 7513, Institute for the Study of Labor (IZA).
  3. Arndt Reichert & Harald Tauchmann, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 0266, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Huber, Martin, 2012. "Identifying causal mechanisms in experiments (primarily) based on inverse probability weighting," Economics Working Paper Series 1213, University of St. Gallen, School of Economics and Political Science, revised May 2013.
  5. Ayala, Luis & Rodríguez, Magdalena, 2013. "Health-related effects of welfare-to-work policies," Social Science & Medicine, Elsevier, vol. 93(C), pages 103-112.
  6. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
  7. Achatz, Juliane & Trappmann, Mark, 2011. "Arbeitsmarktvermittelte Abgänge aus der Grundsicherung : der Einfluss von personen- und haushaltsgebundenen Barrieren," IAB Discussion Paper 201102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  8. Huber, Martin & Lechner, Michael & Steinmayr, Andreas, 2012. "Radius matching on the propensity score with bias adjustment: finite sample behaviour, tuning parameters and software implementation," Economics Working Paper Series 1226, University of St. Gallen, School of Economics and Political Science.

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