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Does leaving welfare improve health? Evidence for Germany
Author(s) -
Huber Martin,
Lechner Michael,
Wunsch Conny
Publication year - 2011
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.1615
Subject(s) - welfare , propensity score matching , german , mental health , matching (statistics) , demographic economics , work (physics) , economics , public economics , medicine , geography , psychiatry , engineering , mechanical engineering , archaeology , pathology , market economy
Using exceptionally rich linked administrative and survey information on German welfare recipients we investigate the health effects of transitions from welfare to employment and of assignments to welfare‐to‐work programmes. Applying semi‐parametric propensity score matching estimators we find that employment substantially increases (mental) health. The positive effects are mainly driven by males and individuals with bad initial health conditions and are largest for males with poor health. In contrast, the effects of welfare‐to‐work programmes, including subsidised jobs, are ambiguous and statistically insignificant for most outcomes. Copyright © 2010 John Wiley & Sons, Ltd.