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Labor Supply and Matching Rates for Welfare Recipients: An Analysis using Neighborhood Characteristics

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  • Bas van der Klaauw

    () (Vrije Universiteit Amsterdam)

  • Jan C. van Ours

    (CentER, Tilburg University)

Abstract

This paper investigates how in addition to personal characteristics the neighborhood affects the individual transition rate from welfare to work. We use a unique administrative database on welfare recipients in Rotterdam, the second largest city of The Netherlands. We find that the exit rate to work of young Dutch welfare recipients is influenced by the neighborhood unemployment rate. Other neighborhood characteristics such as the average housing price are not important. From this we conclude that for young Dutch welfare recipients a high local unemployment rate has a negative spillover effect on the transition from welfare to work.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-002/3.

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Date of creation: 10 Feb 2000
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Handle: RePEc:dgr:uvatin:20000002

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  1. Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1997. "A structural analysis of job search methods and subsequent wages," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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  9. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, September.
  10. Ours, J. C. van & Lindeboom, M., 1993. "Macro Matching and Micro Search Durations; Looking Inside the Black Box of Job Formation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153303, Tilburg University.
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Cited by:
  1. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute for the Study of Labor (IZA).
  2. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute for the Study of Labor (IZA).

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