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Effects of work requirements on welfare migration

Author

Listed:
  • Edmark, Karin

    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

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.

Suggested Citation

  • Edmark, Karin, 2007. "Effects of work requirements on welfare migration," Working Paper Series 2007:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2007_029
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    File URL: http://www.ifau.se/upload/pdf/se/2007/wp07-29.pdf
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Jon H. Fiva, 2007. "Does Welfare Policy Affect Residential Choices? Evidence from a Natural Experiment," Discussion Papers 503, Statistics Norway, Research Department.
    3. Aaron S. Yelowitz, 1995. "The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 909-939.
    4. Kaestner, Robert & Kaushal, Neeraj & Van Ryzin, Gregg, 2003. "Migration consequences of welfare reform," Journal of Urban Economics, Elsevier, vol. 53(3), pages 357-376, May.
    5. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    6. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 285-317.
    7. Jonah B. Gelbach, 2004. "Migration, the Life Cycle, and State Benefits: How Low Is the Bottom?," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1091-1130, October.
    8. Terra McKinnish, 2005. "Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
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    Cited by:

    1. Dahlberg, Matz & Johansson, Kajsa & Mörk, Eva, 2009. "On Mandatory Activation of Welfare Recipients," IZA Discussion Papers 3947, Institute of Labor Economics (IZA).
    2. Karin Edmark, 2009. "Migration Effects of Welfare Benefit Reform," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(3), pages 511-526, September.

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    More about this item

    Keywords

    Welfare migration; welfare-to-work; difference-in-difference-in-differences;
    All these keywords.

    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, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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