Persistence or transition: young adults and social benefits in Germany

Schels, Brigitte

doi:10.1080/13676261.2013.763915

Cited by 20 publications

(12 citation statements)

References 39 publications

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“…Notable exceptions are two U.S. studies based on monthly administrative data from California (Chay et al ., ) and four‐monthly survey data (Chay and Hyslop, ), and a study of transitions between Australian benefit programmes based on quarterly data (Gong, ). A small number of studies have moreover used monthly data and an event‐history framework to analyse welfare spell durations for the U.S. (Blank, ; Sandefur and Cook, ), Norway (Dahl and Lorentzen, ), Sweden (Bäckman and Bergmark, ; Mood, ), and Germany (Schels, ), each finding evidence for duration dependence in welfare benefit receipt.…”

mentioning

confidence: 99%

Time Aggregation and State Dependence in Welfare Receipt

Bhuller

Brinch

Königs

2017

The Economic Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Dynamic discrete-choice models are an important tool in studies of state dependence in benefit receipt. A common assumption of such models is that benefit receipt sequences follow a conditional Markov process. This property has implications for how estimated periodto-period benefit transition probabilities should relate when receipt processes are aggregated over time. This paper assesses whether the conditional Markov property holds in welfare benefit receipt dynamics in Norway using high-quality monthly data from administrative records. We find that the standard conditional Markov model is seriously misspecified. Estimated state dependence is affected substantially by the chosen time unit of analysis, with the average treatment effect of past benefit receipt increasing with the level of aggregation. The model can be improved considerably by permitting richer types of benefit dynamics: We find strong evidence for both duration and occurrence dependence in benefit receipt. Allowing for heterogeneity in the entry and persistence processes, we find important disparities in the effects of observed and persistent unobserved characteristics. Based on our preferred model, the month-to-month persistence probability in benefit receipt for a first-time entrant is 37 percentage points higher than the entry rate of an individual without previous benefit receipt. Over a 12-month period, this corresponds to an average treatment effect of 5 percentage points. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: I38, J60, J64, C23, C41

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confidence: 99%

Time Aggregation and State Dependence in Welfare Receipt

Bhuller

Brinch

Königs

2017

The Economic Journal

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“…Továbbá függ a strukturális sajátosságoktól (munkaerőkereslet, nemzeti politikák, politikai rendszerek stb.) (Barry 2010;Bynner 2005;Kelly 1999), a társadalomban elfoglalt helytől (Lehmann 2004), a globális információ strukturáló hatásaitól (Kelly 1999), a jóléti rendszerektől (Schels 2013). Kogan és Unt (2006) hangsúlyozzák azt a tényt, hogy "az egyes erőforrások hatása -pl.…”

Section: Kutatási Előzményekunclassified

Youth transition to the labour market during employment mobility. Employment and inequality of young people in Europe

Vysotskaya¹,

Kun²,

Doszpoly³

et al. 2017

TéT

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Transition from study to work is considered as the end of youth. How do young people prepare to enter the labour market? What are the strategies young people utilise to become employed if it occurs in another country, as in the case of employment mobility? To answer these questions, the proposed article focuses on how young people move and enter the employment in other destination countries. Alongside with the literature on youth and transition we also observe that young people equally experience challenges of matching their skills in the destination countries. They relate to inequalities on the job market depending on their skills, their qualifications, the type of jobs, their working experiences, etc. The discussions in this paper thus first touch upon the topic of inequality with regard to the process of recruitment and becoming employed. Second, they draw attention to the inferior positioning that young people are prepared to put themselves into when entering the labour market for the first time and emphasise the fact that young people often experience discrimination and unequal treatment when they complete education and apply for jobs, on the grounds of being young and inexperienced. As a result, such a positioning often puts young people in a vulnerable situation, which they accept and endure as long as they are promised work. Furthermore, by focusing on how young people enter the labour market in the receiving country, the paper also explores strategies that young people apply for being employed, becoming integrated in the labour market, overcoming inequalities in employment and finding ways to cope with these challenges in the labour market, as well as their own social lives in the destination country.

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“…This literature has emphasised that movements on and off benefit receipt are strongly related to life course events such as marriage, childbirth, separation, job loss or job entry (Leisering and Leibfried, 1999). Recently, this research was extended to the transition to adulthood and the process of gaining economic independence (Schels, 2013). Findings show that leaving home, having children, dropping out of school early, and individual’s regional mobility on the labour market are predictors of social benefit transitions (Kauppinen et al, 2014).…”

Section: Benefit Dynamics In Perspective: Transitions To Working Lifementioning

confidence: 99%

“…As a consequence, the start of a job for a young benefit recipient does not necessarily lead to an increase in income above the level of social benefits (Gangl, 1998; Schels, 2011). Once employed, however, the additional income in combination with other inner-family sources of support helps the household in overcoming social benefit receipt (Schels, 2013).…”

Section: Benefit Dynamics In Perspective: Transitions To Working Lifementioning

confidence: 99%

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Young adults’ risk of long-term benefit receipt and parents’ socioeconomic background

Schels

2016

Acta Sociologica

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This study investigates social differences in the risk of long-term benefit receipt of young adults in Germany. Although employment is a major route to end social benefit receipt, it may not result in financial independence for all social groups in their early working lives as this also depends on the status of their parents: Do young benefit recipients have unequal chances of making the transition from benefit receipt as soon as they take up employment? How stable is the impact of parents' socioeconomic status on the transition once young adults complete their vocational education? This study conducts an empirical analysis of the careers of a cohort of 18-to-24-year-old Germans who received benefits in 2005 by combining survey data and register data for a six-year observation period. Event history analyses indicate that social differences persist when young adults claim social benefits. In particular, parents' socioeconomic status is positively associated with their offspring's likelihood of ending receipt of social benefits as soon as they are in full-time employment. Parents' socioeconomic status has a relatively stable impact for young beneficiaries irrespective of whether they have completed vocational qualifications or not. The findings suggest that these social differences persist during early working life.

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Persistence or transition: young adults and social benefits in Germany

Cited by 20 publications

References 39 publications

Time Aggregation and State Dependence in Welfare Receipt

Time Aggregation and State Dependence in Welfare Receipt

Youth transition to the labour market during employment mobility. Employment and inequality of young people in Europe

Young adults’ risk of long-term benefit receipt and parents’ socioeconomic background

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