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Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt

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  • Cobb-Clark, Deborah A.
  • Dahmann, Sarah C.
  • Salamanca, Nicolás
  • Zhu, Anna

Abstract

We use variation in the intergenerational persistence across social assistance benefits over 18 years to study the drivers of intergenerational disadvantage. Young people are more likely to receive social assistance if their parents received disability, caring, or single parent benefits, and less likely if they received unemployment benefits. Disparity in intergenerational persistence across benefit types suggests that parental bad luck has broader consequences for youth disadvantage than do their personal choices. Using the intensive margin and timing of parental social assistance to account for unobserved heterogeneity indicates that intergenerational disadvantage is more likely driven by poverty traps than welfare cultures.

Suggested Citation

  • Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Salamanca, Nicolás & Zhu, Anna, 2022. "Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt," Labour Economics, Elsevier, vol. 79(C).
  • Handle: RePEc:eee:labeco:v:79:y:2022:i:c:s092753712200166x
    DOI: 10.1016/j.labeco.2022.102276
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    2. Christina M. Pollard & Sue Booth & Jonathan Louth & Catherine Mackenzie & Ian Goodwin‐Smith, 2020. "“I'd be sleeping in the park, I reckon”: Lived Experience of Using Financial Counselling Services in South Australia," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 353-366, December.
    3. Jennifer Feichtmayer & Regina T. Riphahn, 2023. "Intergenerational Transmission of Welfare Benefit Receipt: Evidence from Germany," CESifo Working Paper Series 10835, CESifo.
    4. Deutscher, Nathan & Mazumder, Bhashkar, 2020. "Intergenerational mobility across Australia and the stability of regional estimates," Labour Economics, Elsevier, vol. 66(C).
    5. Bubonya, Melisa & Cobb-Clark, Deborah A., 2021. "Pathways of Disadvantage: Unpacking the Intergenerational Correlation in Welfare," Economics of Education Review, Elsevier, vol. 80(C).
    6. Irma Mooi‐Reci, 2020. "Intergenerational Mobility Research: Current Challenges and Future Directions," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(2), pages 241-246, June.
    7. Jennifer Feichtmayer & Regina T. Riphahn, 2023. "Intergenerational Transmission of Welfare Benefit Receipt: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1201, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Rafael Carranza, 2020. "Inequality of Outcomes, Inequality of Opportunity, and Economic Growth," Working Papers 534, ECINEQ, Society for the Study of Economic Inequality.
    9. Benjamin Heslop & Antony Drew & Elizabeth Stojanovski & Kylie Bailey & Jonathan Paul, 2018. "Collaboration Vouchers: A Policy to Increase Population Wellbeing," Societies, MDPI, vol. 8(2), pages 1-19, June.

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    More about this item

    Keywords

    Intergenerational correlation; Welfare; Social mobility; Social assistance;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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