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Does social interaction matter for welfare participation?

Author

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  • Sylvain Chareyron

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Patrick Domingues

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Lieno-Gaillardon Lucie

    (UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

The literature indicates that a portion of households eligible for social assistance either does not claim it or does not receive it, thus reducing the efficiency of these programmes. Using French data, we estimate how the change in the share of neighbours that are welfare recipients at the beginning of the period of analysis affects the change in welfare participation. We find that peer-effects significantly influence the probability of receiving income support programme. We also show that when the eligibility status is not taken into account, social interaction effects are underestimated
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sylvain Chareyron & Patrick Domingues & Lieno-Gaillardon Lucie, 2018. "Does social interaction matter for welfare participation?," Post-Print halshs-01960478, HAL.
    • Handle: RePEc:hal:journl:halshs-01960478
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    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
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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