Transition Patterns for the Welfare Reliance of Low Income Mothers in Australia
AbstractThis paper analyzes the mobility of low income mothers in Australia between two groups of governmental transfer payments: Income support payments (IS) and Family Payments (FP, non-income support payments) only. While IS payments are to provide a subsistence of living for her, FP payments are to help low-medium income families with the costs of dependent children. We use a dynamic multinomial logit panel data model with random effects, explaining the reliance of each individual on the income support system during each quarter between 1997 and 2000. The data is drawn from the FaCS 1% Longitudinal Data Set (LDS), a sample of fortnightly administrative records of welfare payments in Australia. We find that both state dependence and unobserved heterogeneity play significant roles. We also find that single mothers and females with partners on income support payments are much more likely to be on income support than otherwise.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1047.
Length: 27 pages
Date of creation: Mar 2004
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Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-03-22 (All new papers)
- NEP-DCM-2004-03-22 (Discrete Choice Models)
- NEP-DEV-2004-03-22 (Development)
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