TY  - RPRT
        AU  - Schneider, Hilmar
AU  - Uhlendorff, Arne
        TI  - The Transition from Welfare to Work and the Role of Potential Labor Income
        PY  - 2004/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1420
        UR  - https://www.iza.org/index.php/publications/dp1420
        AB  - It is often argued that the high level of welfare claims in Germany causes little incentive for
workers with low productivity to seek for a job. We examine the influence of the ratio between
estimated potential labor income and the welfare payment level on the probability of leaving
social welfare. Using the GSOEP, we estimate a discrete time hazard rate model with
competing risks and unobserved heterogeneity. Our results show that the ratio has a positive
effect on the probability of leaving social welfare. This effect is especially relevant for
households with a potential labor income higher than their welfare payment level.
        KW  - duration analysis
KW  - labor supply
KW  - social welfare
        ER  -