IDEAS home Printed from https://ideas.repec.org/a/boi/isrerv/v19y2021i1p31-57.html

Employment And Earnings Mobility Among Income Support Recipients, 2005–2015

Author

Listed:
  • Netta Achdut

    (Ben Gurion University of the Negev)

  • Miri Endeweld

    (The National Insurance Institute)

Abstract

Using longitudinal administrative data, this study followed a cohort of recipients of the Income Support Benefit (ISB) in 2005, tracking their annual employment rate and earnings mobility throughout 2005–15. These trends were compared to those of two other cohorts—low-wage workers and mid-high wage workers. Our findings show that the rate of transitions between employment statuses among ISB recipients over the whole period are generally low, despite the low starting point. Also, ISB recipients showed little upward earnings mobility. Among unemployed ISB recipients in 2005, less than a third were employed in 2015, and employed ISB recipients in 2005 showed a larger decline in their employment compared to other low-wage workers. Wage mobility was also found to be lower for ISB recipients than that of low-wage workers who do not receive this benefit, in almost all indicators considered. Most ISB recipients in 2005 (employed and unemployed), who worked in 2015, had worked continuously in low-wage jobs with little or no prospects for economic progress, and only a small share of ISB recipients made the transition to mid-high wage jobs. Our results highlight that the heterogeneous groups of recipients in the Israeli ISB-system require policies that go beyond activation and work-first policies

Suggested Citation

  • Netta Achdut & Miri Endeweld, 2021. "Employment And Earnings Mobility Among Income Support Recipients, 2005–2015," Israel Economic Review, Bank of Israel, vol. 19(1), pages 31-57.
    • Handle: RePEc:boi:isrerv:v:19:y:2021:i:1:p:31-57
    as

    Download full text from publisher

    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/isrerv/IsER_19_2021_1_031-057.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James P. Ziliak, 2015. "Temporary Assistance for Needy Families," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 303-393, National Bureau of Economic Research, Inc.
    2. Andrew Dyke & Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske & Kyung-Seong Jeon, 2006. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 567-608, July.
    3. Robert G. Wood & Quinn Moore & Anu Rangarajan, "undated". "Two Steps Forward, One Step Back: The Uneven Economic Progress of TANF Recipients," Mathematica Policy Research Reports c70dc231246541b7a53cc28d9, Mathematica Policy Research.
    4. Rucker C. Johnson, 2007. "Wage and Job Dynamics after Welfare Reform: The Importance of Job Skills," Research in Labor Economics, in: Aspects of Worker Well-Being, pages 231-298, Emerald Group Publishing Limited.
    5. Wolfgang Ochel, 2005. "Welfare‐to‐Work Experiences with Specific Work‐First Programmes in Selected Countries," International Social Security Review, John Wiley & Sons, vol. 58(4), pages 67-93, October.
    6. Quinn Moore & Robert G. Wood & Anu Rangarajan, 2012. "The Dynamics of Women Disconnected from Employment and Welfare," Mathematica Policy Research Reports 41287cc6ae4e477590fac1553, Mathematica Policy Research.
    7. Jeffrey Grogger, 2009. "Welfare Reform, Returns to Experience, and Wages: Using Reservation Wages to Account for Sample Selection Bias," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 490-502, August.
    8. Jeounghee Kim, 2012. "The Effects of Welfare-to-Work Programs on Welfare Recipients’ Employment Outcomes," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 130-142, March.
    9. repec:mpr:mprres:5846 is not listed on IDEAS
    10. repec:mpr:mprres:7448 is not listed on IDEAS
    11. Netta Achdut, 2016. "The differential role of human capital and health in explaining welfare exit‐route and labour outcomes," International Journal of Social Welfare, John Wiley & Sons, vol. 25(3), pages 235-246, July.
    12. Andrew R. Feldman, 2011. "What Works in Work-First Welfare: Designing and Managing Employment Programs in New York City," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wwwfw.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu-Ling Chang & Chi-Fang Wu, 2021. "Examining Low-Income Single-Mother Families’ Experiences with Family Benefit Packages during and after the Great Recession in the United States," JRFM, MDPI, vol. 14(6), pages 1-19, June.
    2. Wu, Chi-Fang & Eamon, Mary Keegan, 2011. "Patterns and correlates of involuntary unemployment and underemployment in single-mother families," Children and Youth Services Review, Elsevier, vol. 33(6), pages 820-828, June.
    3. Wu, Chi-Fang, 2011. "Long-term employment and earnings among low-income families with children," Children and Youth Services Review, Elsevier, vol. 33(1), pages 91-101, January.
    4. Darrell J. Glaser & Ahmed S. Rahman, 2017. "Development and Retention of Human Capital in Large Bureaucracies," Departmental Working Papers 60, United States Naval Academy Department of Economics.
    5. Michael Carlos Best & Henrik Jacobsen Jacobsen, 2013. "Optimal Income Taxation with Career Effects of Work Effort," Working Papers 2013-9, Princeton University. Economics Department..
    6. Glaser, Darrell & Rahman, Ahmed, 2015. "Human Capital on the High Seas - Job Mobility and Returns to Technical Skill During Industrialization," MPRA Paper 68351, University Library of Munich, Germany.
    7. Albanese, Andrea & Cockx, Bart & Dejemeppe, Muriel, 2024. "Long-term effects of hiring subsidies for low-educated unemployed youths," Journal of Public Economics, Elsevier, vol. 235(C).
    8. Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth & Jeon, Kyung-Seong & Kahvecioglu, Daver C., 2009. "New Estimates of Public Employment and Training Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program," IZA Discussion Papers 4569, IZA Network @ LISER.
    9. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2009. "The Role of Temporary Help Employment in Low-Wage Worker Advancement," NBER Chapters, in: Studies of Labor Market Intermediation, pages 399-436, National Bureau of Economic Research, Inc.
    10. Steven F. Lehrer & Nuno Sousa Pereira, 2008. "Worker Sorting, Health Insurance and Wages: Further Evidence from Displaced Workers in the United States," CEF.UP Working Papers 0804, Universidade do Porto, Faculdade de Economia do Porto.
    11. Peter R. Mueser & Kenneth R. Troske & David R. Stevens, 2007. "The Impact of Welfare Reform on Leaver Characteristics, Employment and Recidivism: An Analysis of Maryland and Missouri," Working Papers 0720, Department of Economics, University of Missouri.
    12. Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2020. "Occupational mobility and the returns to training," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 174-211, February.
    13. Andrew Dyke & Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske & Kyung-Seong Jeon, 2006. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 567-608, July.
    14. Hohmeyer, Katrin & Wolff, Joachim, 2007. "A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?," IAB-Discussion Paper 200732, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Eva m. Berger & Guenther Koenig & Henning Müller & Felix Schmidt & Daniel Schunk, 2017. "Self-Regulation Training and Job Search Effort: A Natural Field Experiment within an Active Labor Market Program," Working Papers 1712, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    16. Kevin F. Hallock, 2013. "Data Improvement and Labor Economics," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 1-16.
    17. Jinwoo Kwon & Andrea Hetling, 2017. "Moving In and Out of Welfare and Work: The Influence of Regional Socioeconomic Circumstances on Economic Disconnection Among Low-Income Single Mothers," Economic Development Quarterly, , vol. 31(4), pages 326-341, November.
    18. Neumark, David & Shirley, Peter, 2020. "The Long-Run Effects of the Earned Income Tax Credit on Women's Labor Market Outcomes," Labour Economics, Elsevier, vol. 66(C).
    19. Wolff, Joachim & Hohmeyer, Katrin, 2011. "Direct job creation revisited: Is it effective for welfare recipients and does it matter whether participants receive a wage?," VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48722, Verein für Socialpolitik / German Economic Association.
    20. Dahl, Gordon & Loken, Katrine V., 2024. "Families, public policies, and the labor market," Handbook of Labor Economics,, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boi:isrerv:v:19:y:2021:i:1:p:31-57. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yossi Yakhin (email available below). General contact details of provider: https://edirc.repec.org/data/boigvil.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.