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Is Welfare Dependency Inherited? Estimating the Causal Welfare Transmission Effects Using Swedish Sibling Data

  • Edmark, Karin

    ()

    (Research Institute of Industrial Economics (IFN))

  • Hanspers, Kajsa

    (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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File URL: http://www.ifn.se/wfiles/wp/wp894.pdf
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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 894.

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Length: 41 pages
Date of creation: 02 Jan 2012
Date of revision:
Handle: RePEc:hhs:iuiwop:0894
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
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  1. Jörgen Hansen & Magnus Lofstrom, 2010. "Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare," Working Papers id:2647, eSocialSciences.
  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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