TY - RPRT AU - Riphahn, Regina T. AU - Wunder, Christoph TI - State Dependence in Welfare Receipt: Transitions Before and After a Reform PY - 2015/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 9035 UR - https://www.iza.org/index.php/publications/dp9035 AB - 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. KW - unemployment benefit II KW - state dependence KW - social assistance KW - immigration KW - dynamic multinomial logit ER -