%0 Report
        %A Schneider, Hilmar
%A Uhlendorff, Arne
        %T The Transition from Welfare to Work and the Role of Potential Labor Income
        %D 2004
        %8 2004 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1420
        %U https://www.iza.org/publications/dp1420
        %X 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.
        %K duration analysis
%K labor supply
%K social welfare