Peer Effects in Welfare Dependence: Quasi-Experimental Evidence

A-Tier
Journal: Journal of Human Resources
Year: 2009
Volume: 44
Issue: 3

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines peer effects in welfare use among refugees. We exploit a Swedish refugee placement policy, which generated exogenous variation in peer group composition. Our analysis distinguishes between the quantity of contacts—the number of individuals of the same ethnicity—and the quality of contacts—welfare use among members of the ethnic group. Long-term welfare dependence increases if the individual is placed in a welfare dependent community. The number of contacts is either irrelevant or negatively related to welfare receipt; not controlling for residential self-selection yields the opposite conclusion. The results are very similar across household types and in different parts of the predicted earnings distribution.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:44:y:2009:i3:p798-825
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25