The dynamics of welfare entry and exit amongst natives and immigrants

Language
en
Document Type
Article
Issue Date
2016-09-08
Issue Year
2014
Authors
Wunder, Christoph
Riphahn, Regina T.
Editor
Abstract

This article studies welfare entry and exit in Germany and determines the relevance of state dependence for natives and immigrants. Based on dynamic multinomial logit estimations, we calculate transition matrices between three labour market states. We find that temporal persistence in welfare participation can mostly be explained by observed and unobserved characteristics. Immigrants appear to have a higher risk of welfare entry and a lower probability of welfare exit compared to natives. The results do not yield strong evidence of state dependence or of an overall welfare trap.

Journal Title
Oxford Economic Papers
Volume
66
Issue
2
Citation

Oxford Economic Papers 66.2 (2014): S. 580-604. http://oep.oxfordjournals.org/content/66/2/580.abstract

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