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Occasional social assistance prevents individuals from a range of socialills, particularly unemployment and poverty. It remains unclear, however, howand to what extent continued reliance on social assistance leads to individualsbecoming trapped in social assistance dependency. In this paper, we build onthe theory of cumulative disadvantage and examine whether the accumulated useof social assistance over the life course is associated with an increased riskof future social assistance recipiency. We also analyze the extent to whichliving in disadvantaged neighborhoods constitutes an important mechanism in theexplanation of this association. Our analyses use Swedish population registersfor the full population of individuals born in 1981, and these individuals arefollowed for approximately 17 years. While most studies are limited by a lackof granular, life-history data, our granular individual-level data allow us toapply causal-mediation analysis, and thereby quantify the extent to which thelikelihood of ending up in social assistance dependency is affected by residingin disadvantaged neighborhoods. Our findings show the accumulation of socialassistance over the studied period is associated with a more than four-foldincrease on a risk ratio scale for future social assistance recipiency,compared to never having received social assistance during the period examined.Then, we examine how social assistance dependency is mediated by prolongedexposure to disadvantaged neighborhoods. Our results suggest that the indirecteffect of disadvantaged neighborhoods is weak to moderate. Therefore, socialassistance dependency may be a multilevel process. Future research is toexplore how the mediating effects of disadvantaged neighborhoods vary indifferent contexts.

To What Extent Do Disadvantaged Neighborhoods Mediate Social Assistance Dependency? Evidence from Sweden