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State dependence in Swedish social assistance in the 1990s: What happened to those who were single before the recession?


  • Andrén, Daniela

    () (Örebro University School of Business)

  • Andrén, Thomas

    () (Swedish Confederation of Professional Associations (Saco))


Using a dynamic discrete choice model that controls for unobserved heterogeneity and the initial conditions problem, we estimate the state dependence in Swedish social assistance for Swedish-born and foreign-born who were single in 1990 before the recession period started. The estimates of the structural state dependence for Swedish-born singles indicate that it is unaffected by the event of living together with a partner, and the effect is significantly lower for women than for men. For the foreign-born singles, the state dependence for those who stay single the whole decade is equally strong for men and women, and almost not affected when the foreign-born single started to live together with a foreign-born partner.

Suggested Citation

  • Andrén, Daniela & Andrén, Thomas, 2013. "State dependence in Swedish social assistance in the 1990s: What happened to those who were single before the recession?," Working Papers 2013:10, Örebro University, School of Business.
  • Handle: RePEc:hhs:oruesi:2013_010

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    References listed on IDEAS

    1. Lennart Flood & Jörgen Hansen & Roger Wahlberg, 2004. "Household Labor Supply and Welfare Participation in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    2. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    3. Martin Biewen, 2009. "Measuring state dependence in individual poverty histories when there is feedback to employment status and household composition," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1095-1116.
    4. Delia Furtado & Stephen J. Trejo, 2013. "Interethnic marriages and their economic effects," Chapters,in: International Handbook on the Economics of Migration, chapter 15, pages 276-292 Edward Elgar Publishing.
    5. Lorenzo Cappellari & Stephen P. Jenkins, 2008. "Estimating low pay transition probabilities accounting for endogenous selection mechanisms," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 57(2), pages 165-186.
    6. Alan Barrett & Yvonne McCarthy, 2008. "Immigrants and welfare programmes: exploring the interactions between immigrant characteristics, immigrant welfare dependence, and welfare policy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 543-560, Autumn.
    7. Lorenzo Cappellari & Stephen P. Jenkins, 2014. "The Dynamics of Social Assistance Benefit Receipt in Britain," Research in Labor Economics,in: Safety Nets and Benefit Dependence, volume 39, pages 41-79 Emerald Publishing Ltd.
    8. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    9. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
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    More about this item


    social assistance; state dependence; country of birth; singles; married/cohabitated; unobserved heterogeneity; initial conditions; dynamic random effects probit model; GHK simulator;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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