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Schneider, H., Uhlendorff, A. Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?. Journal of Contextual Economics – Schmollers Jahrbuch, 125(1), 51-61. https://doi.org/10.3790/schm.125.1.51
Schneider, Hilmar and Uhlendorff, Arne "Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?" Journal of Contextual Economics – Schmollers Jahrbuch 125.1, 2005, 51-61. https://doi.org/10.3790/schm.125.1.51
Schneider, Hilmar/Uhlendorff, Arne (2005): Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 125, iss. 1, 51-61, [online] https://doi.org/10.3790/schm.125.1.51

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Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?

Schneider, Hilmar | Uhlendorff, Arne

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 51–61

4 Citations (CrossRef)

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Article Details

Schneider, Hilmar

Uhlendorff, Arne

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Abstract

lt is often argued that the high level of welfare claims in Germany creates little incentive for workers with low productivity to seek for ajob. We examine the influence of the ratio between estimated potential labor income and the welfare payment level on the probability of leaving social welfare. We estimate a discrete time hazard rate model with unobserved heterogeneity using representative micro data from the German SocioEconomic Panel Study (SOEP). 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.