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

Author

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  • Edmark, Karin

    () (Uppsala Center for Labor Studies)

  • Hanspers, Kajsa

    () (Department of Economics)

Abstract

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.

Suggested Citation

  • Edmark, Karin & Hanspers, Kajsa, 2012. "Is welfare dependency inherited? Estimating the causal welfare transmission effects using Swedish sibling data," Working Paper Series, Center for Labor Studies 2012:2, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uulswp:2012_002
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    File URL: http://www.ucls.nek.uu.se/digitalAssets/136/136582_20122_1.pdf
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    References listed on IDEAS

    as
    1. Tim Maloney & Sholeh Maani & Gail Pacheco, 2003. "Intergenerational Welfare Participation in New Zealand," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 346-362, September.
    2. 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).
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    Cited by:

    1. Steffen Müller & Regina T. Riphahn & Caroline Schwientek, 2017. "Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 213-238.
    2. Josephson, Malin & Karnehed, Nina & Lindahl, Erica & Persson, Helena, 2013. "Intergenerational transmission of long-term sick leave," Working Paper Series 2013:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Espen Bratberg & Øivind Anti Nilsen & Kjell Vaage, 2012. "Is Recipiency of Disability Pension Hereditary?," CESifo Working Paper Series 3796, CESifo Group Munich.

    More about this item

    Keywords

    Welfare benefits; intergenerational mobility; sibling approach;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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