Dynamic effects of mandatory activation of welfare participants
Previous literature shows that activation requirements for welfare participants decrease welfare participation. However, the dynamics have not been examined, and often only exit e ects are analyzed. In this paper, we look more closely at the transition rates into and out of welfare. Using register data on the entire population of Stockholm, we are able to capture how both entry and exit rates were a ected when activation requirements were introduced at di erent times in Stockholm’s city districts. The results indicate that the main reduction in welfare participation is due to a small increase in exit rates. The part of the population that is at risk of entering into welfare, though, experiences a reduction in entry rates due to the reform. There are also heterogeneous e ects, namely, large e ects on entry rates for young individuals. In addition, there are larger e ects on exit rates for unmarried individuals without children compared to the population as a whole.
|Date of creation:||16 Jun 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Katherine Cuff, 1998.
"Optimality of Workfare with Heterogeneous Preferences,"
968, Queen's University, Department of Economics.
- Katherine Cuff, 2000. "Optimality of workfare with heterogeneous preferences," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 149-174, February.
- Hansen, Jörgen & Lofstrom, Magnus, 1999.
"Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare,"
IZA Discussion Papers
100, Institute for the Study of Labor (IZA).
- 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).
- JÃ¶rgen Hansen & Magnus Lofstrom, 2010. "Immigrant Assimilation and Welfare Participation: Do Immigrants Assimilate Into or Out-of Welfare," Working Papers id:2647, eSocialSciences.
- 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.
- Van den Berg, Gerard J., 2001.
"Duration models: specification, identification and multiple durations,"
Handbook of Econometrics,
in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460
- Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
- Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
- Brett, Craig, 1998. "Who Should Be on Workfare? The Use of Work Requirements as Part of an Optimal Tax Mix," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 607-22, October.
- Hansen, Jörgen & Lofstrom, Magnus, 2006. "Immigrant-Native Differences in Welfare Participation: The Role of Entry and Exit Rates," IZA Discussion Papers 2261, Institute for the Study of Labor (IZA).
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
NBER Working Papers
8983, National Bureau of Economic Research, Inc.
- Besley, Timothy & Coate, Stephen, 1992. "Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs," American Economic Review, American Economic Association, vol. 82(1), pages 249-61, March.
- Jonah B. Gelbach, 2004. "Migration, the Life Cycle, and State Benefits: How Low Is the Bottom?," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1091-1130, October.
- Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
- Karin Edmark, 2009. "Migration Effects of Welfare Benefit Reform," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(3), pages 511-526, 09.
- Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
- Jeffrey Grogger & Steven J. Haider & Jacob Klerman, 2003.
"Why Did the Welfare Rolls Fall During the 1990's? The Importance of Entry,"
American Economic Review,
American Economic Association, vol. 93(2), pages 288-292, May.
- Jeffrey Grogger & Steven J. Haider & Jacob Alex Klerman, 2003. "Why Did the Welfare Rolls Fall During the 1990s? The Importance of Entry," Working Papers 03-07, RAND Corporation Publications Department.
- Dahlberg, Matz & Johansson, Kajsa & Mörk, Eva, 2008.
"On mandatory activation of welfare receivers,"
Working Paper Series
2008:13, Uppsala University, Department of Economics.
- McKinnish, Terra, 2007. "Welfare-induced migration at state borders: New evidence from micro-data," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 437-450, April.
- Chambers, Robert G., 1989. "Workfare or welfare?," Journal of Public Economics, Elsevier, vol. 40(1), pages 79-97, October.
When requesting a correction, please mention this item's handle: RePEc:hhs:uulswp:2010_011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.