Conference Paper Jahrestagung des Vereins fuer Socialpolitik Conference
Is the Receipt of Social Assistance Transmitted from Parents to Children? Evidence from German Panel Data
30 Sep 2004
This paper investigates the extent to which the duration and the receipt of social assistance (Sozialhilfe) are linked between parents and children in Germany. The analysis is based on alternative estimation procedures using data from the German Socio-Economic Panel Study. The estimates suggest that parental welfare duration during late childhood years (ages 13-16) increases the probability and the expected duration that children receive social assistance in later life. Family background characteristics show a moderate effect on children's likelihood to live on welfare as young adults. Using the Rivers and Vuong (1988) and the Smith and Blundell (1986) two-step procedures, no empirical evidence is found that the intergenerational correlation in social assistance participation is spurious.