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Is welfare dependency inherited? Estimating the causal welfare transmission effects using Swedish sibling data

  • Edmark, Karin

    ()

    (The Research Institute of Industrial Economics)

  • Hanspers, Kajsa

    ()

    (Department of Economics, Uppsala University)

This study tests whether individuals who grow up with parents on welfare benefits are themselves more (or less) likely to be welfare recipients as young adults, compared to individuals who grow up in non-welfare households. We use the sibling difference method to identify causal effects separately from the effects of correlated factors. While a descriptive analysis reveals a fairly high positive intergenerational correlation, especially in the late teens and conditional on a large set of household level factors, the sibling analysis provides no support for a causal effect of parents’ welfare benefit receipt on children’s future welfare use.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:25.

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Length: 41 pages
Date of creation: 15 Dec 2011
Date of revision:
Handle: RePEc:hhs:ifauwp:2011_025
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  1. Hansen, Jörgen & Löfström, Magnus, 2000. "Immigrant Assimilation And Welfare Participation: Do Immigrants Assimilate Into Or Out Of Welfare?," CEPR Discussion Papers 2430, C.E.P.R. Discussion Papers.
  2. Tim Maloney & Sholeh Maani & Gail Pacheco, 2003. "Intergenerational Welfare Participation in New Zealand," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 346-362, 09.
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