Working Paper: CEPR ID: DP2362
Authors: Bas van der Klaauw; Jan C. van Ours
Abstract: This paper investigates how in addition to personal characteristics the neighbourhood affects the individual transition rate from welfare to work. We use a unique administrative database on welfare recipients in Rotterdam, the second largest city of The Netherlands. We find that the exit rate to work of young Dutch welfare recipients is influenced by the neighbourhood unemployment rate. Other neighbourhood characteristics such as the average housing price are not important. From this we conclude that for young Dutch welfare recipients a high local unemployment rate has a negative spillover effect on the transition from welfare to work.
Keywords: welfare to work; unemployment; duration; spillovers
JEL Codes: C41; J61; J64; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| neighbourhood unemployment rate (R23) | exit rate to work of young Dutch welfare recipients (J63) |