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Income Support, Employment Transitions and Well-Being

Ronnie Schöb, Tobias Wolf, Clemens Hetschko – 2020

Using specific panel data of German welfare benefit recipients, we investigate the non-pecuniary life satisfaction effects of in-work benefits. Our empirical strategy combines difference-in-difference designs with synthetic control groups to analyse transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working makes people generally better off than being unemployed but employed welfare recipients do not reach the life satisfaction level of regular employees. This implies that welfare receipt entails non-compliance with the norm to make one's own living. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits.

Titel
Income Support, Employment Transitions and Well-Being
Verfasser
Ronnie Schöb, Tobias Wolf, Clemens Hetschko
Schlagwörter
article, well-being
Datum
2020
Kennung
10.1016/j.labeco.2020.101887
Quelle/n
Erschienen in
Labour Economics 66.2020
Art
Text
Research Seminar in Economics
Forschungsschwerpunkt_PE
FinanzArchiv
voxeu1
BDPEMS_Klein
Ökonomenstimme