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Labor Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighborhood Characteristics

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  • van der Klaauw, Bas

    (Vrije Universiteit Amsterdam)

  • van Ours, Jan C.

    (Erasmus School of Economics)

Abstract

This paper investigates how in addition to personal characteristics the neighborhood affects the individual transition rate from welfare to work. We use a unique administrative database on welfare recipients in Rotterdam, the second largest city of The Netherlands. We find that the exit rate to work of young Dutch welfare recipients is influenced by the neighborhood unemployment rate. Other neighborhood characteristics such as the average housing price are not important. From this we conclude that for young Dutch welfare recipients a high local unemployment rate has a negative spillover effect on the transition from welfare to work.

Suggested Citation

  • van der Klaauw, Bas & van Ours, Jan C., 2000. "Labor Supply and Matching Rates for Welfare Recipients: An Analysis Using Neighborhood Characteristics," IZA Discussion Papers 102, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp102
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    Cited by:

    1. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute of Labor Economics (IZA).
    2. Thomas J. Nechyba, 2001. "Social Approval, Values, and AFDC: A Reexamination of the Illegitimacy Debate," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 637-666, June.
    3. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute of Labor Economics (IZA).

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    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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