Wang-Sheng Lee () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Umut Oguzoglu () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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The central research question addressed in this paper is how receipt of income support payments affects the well-being of youths. Using 1997-2004 panel data from a nationally representative survey of Australian youths, we attempt to estimate the size of the welfare stigma faced by Australian youths, where stigma is defined as the effect of welfare receipt on reported happiness levels. In analysing the determinants of happiness, we argue that it is important to control for dynamics and initial conditions. The latter arguably measures an initial setpoint of happiness which the psychological literature has found strong support for. In contrast to the general findings of the existence of a welfare stigma for adults, based on our results using dynamic panel probit models, our findings suggest that for Australian youths, there is a small negative but not statistically significant stigma associated with welfare receipt.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2007n03.
Length: 19 pages Date of creation: Feb 2007 Date of revision: Handle: RePEc:iae:iaewps:wp2007n03
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