@TechReport{iza:izadps:dp9035, author={Riphahn, Regina T. and Wunder, Christoph}, title={State Dependence in Welfare Receipt: Transitions Before and After a Reform}, year={2015}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={9035}, url={https://www.iza.org/index.php/publications/dp9035}, abstract={We study state dependence in welfare receipt and investigate whether welfare transitions changed after a welfare reform. Using data from the German Socio-Economic Panel, we apply dynamic multinomial logit estimators and find that state dependence in welfare receipt is not a central feature of the German welfare system. We find that welfare transitions changed after the reform: transitions from welfare to employment became more likely and persistence in welfare and inactivity declined. We observe a large relative increase in transitions from employment to welfare. Immigrants' responsiveness to the labor market situation increased after the reform.}, keywords={unemployment benefit II;state dependence;social assistance;immigration;dynamic multinomial logit}, }