State Dependence in Social Assistance Receipt in Canada

Hansen, Jørgen; Lofstrom, Magnus; Liu, Xingfei; Zhang, Xuelin

doi:10.1108/s0147-9121_2014_0000039002

Cited by 17 publications

(32 citation statements)

References 11 publications

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“…Administrative records by contrast often contain data on the total amount of benefits received during the calendar year but no information on the timing of receipt. Researchers working with such data have usually employed a ‘benefit year’ approach classifying an individual as recipient if a positive amount of benefits was received over the entire year (Hansen and Lofstrom, , ; Andrén and Andrén, ; Hansen et al ., ). We test both of these approaches and compare the results.…”

Section: Institutional Background and Datamentioning

confidence: 97%

“…The recent work on welfare benefit dynamics has primarily relied on estimation of dynamic discrete‐choice models to study state dependence in benefit receipt . Due to the limited availability of individual‐level data on welfare benefit receipt at shorter observation intervals much of the evidence on state dependence in welfare benefit receipt is based on annual data that come either from administrative sources (see Hansen and Lofstrom, , ; or Andrén and Andrén, for Sweden) or from household survey data (Cappellari and Jenkins, for Britain; Riphahn and Wunder, ; Wunder and Riphahn, and Königs, for Germany; Hansen et al ., for Canada). 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, ).…”

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confidence: 99%

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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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Section: Institutional Background and Datamentioning

confidence: 97%

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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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“…Cappellari and Jenkins (2014) relate part of the decline in receipt rates in the United Kingdom to the introduction of the Jobseeker's Allowance in 1996 and the Working-Families Tax Credit in 1999. Hansen et al (2014) point to the decrease in unemployment rates as the main factor for falling receipt rates. They however suggest also that a 1996 reform to the financing of social assistance expenditures may have played a role that resulted in reduced transfers from the federal government to the provinces and stronger incentives for the provinces to move recipients from benefits into work.…”

mentioning

confidence: 99%

“…The analysis draws on results provided in earlier country studies on SA benefit receipt initiated as part of this project. They include Britain (Cappellari & Jenkins, 2008a, 2014, Norway (Bhuller & Königs, 2011, Bhuller, Brinch & Königs, 2014, Luxembourg (Königs, 2012), Germany (Königs, 2013a(Königs, , 2014a, the Netherlands (Königs, 2013b), and Canada (Finnie & Pavlic, 2013). For Latvia, results are taken from material prepared by the World Bank (World Bank, 2013).…”

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confidence: 99%

“…One potential explanation for the much higher levels of state dependence, both raw and genuine, in the studies for Canada and the Netherlands is the different method used for defining the SA variable: Rather than to measure benefit receipt at one point in time each year, Hansen et al (2014) and Königs (2013b) model benefit receipt at any time during the year (i.e., a person is counted as a benefit recipient in year t if they have received SA at any point during the year). As discussed in Section 2, this approach may be necessary due to the limitations of the available data, and generally leads to higher rates of benefit receipt and a stronger degree of measured persistence in benefit receipt over time.…”

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confidence: 99%

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Are Recipients of Social Assistance 'Benefit Dependent'?

Immervoll

Jenkins

Königs

2015

OECD Social, Employment and Migration Working Papers

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Organisation de Coopération et de Développement Économiques4 Organisation for Economic Cooperation and Development4 07-Jan-2015 ___________________________________________________________________________________________ English-Or. English DIRECTORATE FOR EMPLOYMENT, LABOUR AND SOCIAL AFFAIRS EMPLOYMENT, LABOUR AND SOCIAL AFFAIRS COMMITTEE OECD SOCIAL, EMPLOYMENT AND MIGRATION WORKING PAPERS No. 162 Are recipients of social assistance 'benefit dependent'? Concepts, measurement and results for selected countries

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State dependence in welfare receipt: transitions before and after a reform

Riphahn

Wunder

2015

Empir Econ

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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. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. State dependence in welfare receipt: transitions before and after a reform AbstractWe study state dependence in welfare receipt and investigate whether welfare transitions changed after a welfare reform. Using data from the German Socio-Economic Panel, we apply dynamic multinomial logit estimators and find that state dependence in welfare receipt is not a central feature of the German welfare system. We find that welfare transitions changed after the reform:transitions from welfare to employment became more likely and persistence in welfare and inactivity declined. We observe a large relative increase in transitions from employment to welfare.Immigrants' responsiveness to the labor market situation increased after the reform.

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State Dependence in Social Assistance Receipt in Canada

Cited by 17 publications

References 11 publications

Time Aggregation and State Dependence in Welfare Receipt

Time Aggregation and State Dependence in Welfare Receipt

Are Recipients of Social Assistance 'Benefit Dependent'?

State dependence in welfare receipt: transitions before and after a reform

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