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The dynamics of social assistance benefit receipt in Britain

Jenkins, Stephen P. ORCID: 0000-0002-8305-9774 and Cappellari, Lorenzo (2014) The dynamics of social assistance benefit receipt in Britain. In: Safety nets and benefit dependence. Research in Labor Economics,39. Emerald, London, UK, pp. 41-79. ISBN 9781781909362

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Identification Number: 10.1108/S0147-912120140000039000

Abstract

We analyse the dynamics of social assistance (SA) benefit receipt among working-age adults in Britain between 1991 and 2005. The decline in the annual SA receipt rate was driven by a decline in the SA entry rate rather than by the SA exit rate (which also declined). We examine the determinants of these trends using a multivariate dynamic random effects probit model of SA receipt probabilities applied to British Household Panel Survey data. We show how the model may be used to derive year by-year predictions of aggregate SA entry, exit and receipt rates. The analysis highlights the importance of the decline in the unemployment rate over the period and other changes in the socio- economic environment including two reforms to the income maintenance system in the 1990s and also illustrates the effects of self-selection (‘creaming’) on observed and unobserved characteristics.

Item Type: Book Section
Official URL: https://rle.iza.org/
Additional Information: © 2014 Emerald Group Publishing Limited
Divisions: Social Policy
STICERD
Subjects: H Social Sciences > H Social Sciences (General)
Date Deposited: 01 Jul 2014 11:37
Last Modified: 20 Oct 2021 00:37
Projects: RES-062-23-1455
Funders: Economic and Social Research Council (ESRC) Research Centre on Micro-Social Change
URI: http://eprints.lse.ac.uk/id/eprint/57304

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