TY  - CHAP
AB  - Abstract I study state dependence in social assistance receipt in Germany using annual survey data from the German Socio-Economic Panel for the years 1995–2011. There is considerable observed state dependence, with an average persistence rate in benefits of 68 per cent comparing to an average entry rate of just above 3 per cent. To identify a possible structural component, I estimate a series of dynamic random-effects probit models that control for observed and unobserved heterogeneity and endogeneity of initial conditions. I find evidence of substantial structural state dependence in benefit receipt. Estimates suggest that benefit receipt one year ago is associated with an increase in the likelihood of benefit receipt today by a factor of 3.4. This corresponds to an average partial effect of 13 percentage points. Average predicted entry and persistence rates and the absolute level of structural state dependence are higher in Eastern Germany than in Western Germany. I find only little evidence for time variation in state dependence around the years of the Hartz reforms.
VL  - 39
SN  - 978-1-78441-110-7, 978-1-78190-936-2/0147-9121
DO  - 10.1108/S0147-912120140000039003
UR  - https://doi.org/10.1108/S0147-912120140000039003
AU  - Königs Sebastian
PY  - 2014
Y1  - 2014/01/01
TI  - State Dependence in Social Assistance Benefit Receipt in Germany Before and After the Hartz Reforms
T2  - Safety Nets and Benefit Dependence
T3  - Research in Labor Economics
PB  - Emerald Group Publishing Limited
SP  - 107
EP  - 150
Y2  - 2024/04/19
ER  -