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The Intergenerational Transmission of Welfare Dependency

Author

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  • Monique De Haan
  • Ragnhild C Schreiner

Abstract

Exploiting rich administrative data from Norway, we estimate non-parametric bounds around the average causal effect of parental welfare participation on children’s welfare participation for children that grew up in welfare-dependent families. We find upper bounds well below the intergenerational association and substantially below existing local average treatment effect estimates in the literature. Our results show that a substantial portion of the observed intergenerational correlation in welfare dependency is due to selection, and that there is important heterogeneity in the intergenerational effects both between participants (and their children) within a welfare program, as well as across different welfare programs.

Suggested Citation

  • Monique De Haan & Ragnhild C Schreiner, 2025. "The Intergenerational Transmission of Welfare Dependency," The Economic Journal, Royal Economic Society, vol. 135(669), pages 1609-1640.
    • Handle: RePEc:oup:econjl:v:135:y:2025:i:669:p:1609-1640.
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    File URL: http://hdl.handle.net/10.1093/ej/ueaf004
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    1. is not listed on IDEAS
    2. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Gielen, Anne C., 2024. "The intergenerational effects of requiring unemployment benefit recipients to engage in non-search activities," Labour Economics, Elsevier, vol. 91(C).
    3. 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).
    4. Marte E. S. Ulvestad & Simen Markussen, 2023. "Born or bred? The roles of nature and nurture for intergenerational persistence in labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 1005-1047, April.
    5. Davuthan Günaydın, 2023. "Sosyal Yardım Sorunu Olarak Sosyal Yardım Bağımlılığı," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, issue 84, pages 15-26, July.
    6. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    7. Regina T. Riphahn & Jennifer Feichtmayer, 2024. "Intergenerational Transmission of Welfare Benefit Receipt: Evidence from Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(4), pages 1226-1251, December.
    8. Bastian, Jacob E. & Jones, Maggie R., 2021. "Do EITC expansions pay for themselves? Effects on tax revenue and government transfers," Journal of Public Economics, Elsevier, vol. 196(C).

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • 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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