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Labour Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighbourhood Characteristics

Author

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  • van Ours, Jan C.
  • van der Klaauw, Bas

Abstract

This paper investigates how in addition to personal characteristics the neighbourhood affects the individual transition rate from welfare to work. We use a unique administrative database on welfare recipients in Rotterdam, the second largest city of The Netherlands. We find that the exit rate to work of young Dutch welfare recipients is influenced by the neighbourhood unemployment rate. Other neighbourhood characteristics such as the average housing price are not important. From this we conclude that for young Dutch welfare recipients a high local unemployment rate has a negative spillover effect on the transition from welfare to work.

Suggested Citation

  • van Ours, Jan C. & van der Klaauw, Bas, 2000. "Labour Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighbourhood Characteristics," CEPR Discussion Papers 2362, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2362
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    Cited by:

    1. is not listed on IDEAS
    2. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute of Labor Economics (IZA).
    3. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute of Labor Economics (IZA).
    4. Thomas J. Nechyba, 2001. "Social Approval, Values, and AFDC: A Reexamination of the Illegitimacy Debate," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 637-666, June.

    More about this item

    Keywords

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    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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