@TechReport{iza:izadps:dp1420,
            	author={Schneider, Hilmar and Uhlendorff, Arne},
            	title={The Transition from Welfare to Work and the Role of Potential Labor Income},
            	year={2004},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1420},
            	url={https://www.iza.org/publications/dp1420},
	abstract={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.},
	keywords={duration analysis;labor supply;social welfare},
            }