The transition from welfare to work and the role of potential labor income
By: by Hilmar Schneider, Arne Uhlendorff.
Contributors: Uhlendorff, Arne.
Series: Discussion paper ;; no. 1420; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1420
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Welfare recipients -- Employment -- California.
Description: "It is often argued that the high level of welfare claims in Germany causes little incentive for workers with low productivity to seek for a job. We examine the influence of the ratio between estimated potential labor income and the welfare payment level on the probability of leaving social welfare. Using the GSOEP, we estimate a discrete time hazard rate model with competing risks and unobserved heterogeneity. Our results show that the ratio has a positive effect on the probability of leaving social welfare. This effect is especially relevant for households with a potential labor income higher than their welfare payment level"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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