Working Paper No. 894

Is Welfare Dependency Inherited? Estimating the Causal Welfare Transmission Effects Using Swedish Sibling Data

Published: January 2, 2012Pages: 41Keywords: Welfare benefits; Intergenerational mobility; Sibling approachJEL-codes: I30; J10

Is Welfare Dependency Inherited? Estimating the Causal Welfare Transmission Effects Using Swedish Sibling Data Karin Edmark and Kajsa Hanspers

 

This study tests whether individuals who grow up with parents on welfare benefits are themselves more (or less) likely to be welfare recipients as young adults, compared to individuals who grow up in non-welfare households. We use the sibling difference method to identify causal effects separately from the effects of correlated factors. While a descriptive analysis reveals a fairly high positive intergenerational correlation, especially in the late teens and conditional on a large set of household level factors, the sibling analysis provides no support for a causal effect of parents’ welfare benefit receipt on children’s future welfare use.

Karin Edmark

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EU's Role in Fighting Global Imbalances (Edward Elgar, 2015), is edited by Antonina Bakardjieva Engelbrekt, Stockholm University, Moa Mårtensson, Uppsala University,  Lars Oxelheim, IFN and Lund University and Thomas Persson, Uppsala University.The authors – including Magnus henrekson, IFN – address some of the greatest challenges of our time: poverty, protectionism, climate change, and human trafficking. Further reading

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