This study tests for a migration response to the implementation of stricter rules for welfare benefit receipt, in the form of mandatory participation in activation programs for welfare recipients, in Stockholm town districts. The hypothesis is that welfare benefit prone individuals will choose to live in a town district that has no program if they dislike the loss of leisure due to program participation more than they value the contents of the program, and vice versa. The results give some indications of a negative effect of the program on the outmigration of welfare prone individuals. This is however not robust to changes in comparison group nor in the sample of town districts. The conclusion that can be drawn is that there are no indications that activation programs lead to outmigration of welfare prone individuals.
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Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number
2007:29.
Length: 40 pages Date of creation: 12 Nov 2007 Date of revision: Handle: RePEc:hhs:ifauwp:2007_029
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Find related papers by JEL classification: H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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