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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 characteristicstheneighborhood affects the individual transition rate from welfare towork.We use a unique administrative database on welfare recipients inRotterdam,the second largest city of The Netherlands. We find that the exitrate towork of young Dutch welfare recipients is influenced by theneighborhoodunemployment rate. Other neighborhood characteristics such as theaveragehousing price are not important. From this we conclude that for youngDutchwelfare recipients a high local unemployment rate has a negativespillovereffect 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. O'Regan, Katherine M. & Quigley, John M., 1996. "Spatial Effects upon Unemployment Outcomes: The Case of New Jersey Teenagers," Berkeley Program on Housing and Urban Policy, Working Paper Series, Berkeley Program on Housing and Urban Policy qt5cn8m94b, Berkeley Program on Housing and Urban Policy.
  2. 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.
  3. C Bean, 1992. "European Unemployment: A Survey," CEP Discussion Papers dp0071, Centre for Economic Performance, LSE.
  4. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
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  6. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(3), pages 827-72, August.
  7. Eshel, I. & Samuelson, L. & Shaked, A., 1996. "Altruists, Egoists and Hooligans in a Local Interaction Model," Working papers, Wisconsin Madison - Social Systems 9612r, Wisconsin Madison - Social Systems.
  8. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 6(1), pages 1-20, January.
  9. Bala, Venkatesh & Goyal, Sanjeev, 1998. "Learning from Neighbours," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(3), pages 595-621, July.
  10. H. W. Hoynes, . "Local Labor Markets and Welfare Spells: Do Demand Conditions Matter?," Institute for Research on Poverty Discussion Papers 1104-96, University of Wisconsin Institute for Research on Poverty.
  11. Berg, G.J. van den & Gorter, C., 1996. "Job search and commuting time," Serie Research Memoranda 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  12. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  13. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199279173, October.
  14. repec:att:wimass:9127 is not listed on IDEAS
  15. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(3), pages 637-55, June.
  16. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  17. Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March.
  18. 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.
  19. repec:att:wimass:9217 is not listed on IDEAS
  20. Topa, Giorgio, 1997. "Social Interactions, Local Spillovers and Unemployment," Working Papers, C.V. Starr Center for Applied Economics, New York University 97-17, C.V. Starr Center for Applied Economics, New York University.
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Cited by:
  1. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute for the Study of Labor (IZA).
  2. 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).

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