Do welfare dependent neighbors matter for individual welfare dependency ?
نویسندگان
چکیده
This paper investigates neighborhood peer eff ects on individual welfare using a combined IV and control function approach. The empirical analysis is based on panel data for the years 2007-2010 constructed by enriching the geo-referenced version of the German Socio-Economic Panel (GSOEP) with aggregated zip code level-information. The results suggest that individual welfare use is positively correlated with neighborhood social benefi t recipient rates, i.e. an increase in the share of neighborhood peers on social benefi t by 1 percentage point raises the individual probability of welfare use by 0.97 percentage points. JEL Classifi cation: I38,R23
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