Advanced Search
MyIDEAS: Login

Earnings, income and poverty among welfare leavers in Sweden

Contents:

Author Info

  • Persson, Anna

    ()
    (Department of Economics, Uppsala University)

Registered author(s):

    Abstract

    Given the trend towards more active policies on reducing the take-up of welfare benefits, the consequences of leaving welfare on individual well-being constitutes a significant issue. This paper studies the disposable income and poverty among welfare leavers in Sweden during 19 years (1990-2008). Using a rich set of register data we are able to accurately measure disposable income and other financial and labor market outcomes and thereby give a well-founded analysis of the financial well-being of these individuals. We find that there are large and significant differences in post welfare financial situation among those that work full time after leaving welfare and those who work only a little or not at all. Labor work is associated with a higher probability of experiencing a financial gain after leaving welfare as well as a lower risk of repeated dependency. This relationship is not sensitive to changes in the business cycle, and is stronger for those that leave welfare after having received relatively high amounts of benefits. Groups that typically have a weaker attachment to the labor market are more sensitive to variations in the business cycle. Leavers who neither work nor receive benefits from social insurance are likely to be financially dependent on family members, and they are also more likely than other leavers to be in poverty. We conclude that leaving welfare is not always associated with becoming financially better off, and post welfare well being depend heavily on labor market outcomes.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ifau.se/Upload/pdf/se/2011/wp11-17-Earnings-income-and-poverty-among-welfare-leavers-in-Sweden.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:17.

    as in new window
    Length: 62 pages
    Date of creation: 27 Oct 2011
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2011_017

    Contact details of provider:
    Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
    Phone: (+46) 18 - 471 70 70
    Fax: (+46) 18 - 471 70 71
    Email:
    Web page: http://www.ifau.se/
    More information through EDIRC

    Related research

    Keywords: welfare leavers; poverty; self-sufficiency; disconnected leavers;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Hansen, J├Ârgen & Wahlberg, Roger, 2004. "Poverty Persistence in Sweden," IZA Discussion Papers 1209, Institute for the Study of Labor (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hhs:ifauwp:2011_017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margareta Wicklander).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.