Is Welfare Dependency Inherited? Estimating the Causal Welfare Transmission Effects Using Swedish Sibling Data
Research Institute of Industrial Economics
Uppsala University - Department of Economics
January 2, 2012
IFN Working Paper No. 894
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.
Number of Pages in PDF File: 42
Keywords: welfare benefits, intergenerational mobility, sibling approach
JEL Classification: I3, J1working papers series
Date posted: May 27, 2012
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