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The Quarterly Journal of Economics
Article . 2014 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2014 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2014
Data sources: EconStor
EconStor
Research . 2014
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Family Welfare Cultures

Authors: Gordon B. Dahl; Andreas Ravndal Kostøl; Magne Mogstad;

Family Welfare Cultures

Abstract

Abstract We investigate the existence and importance of family welfare cultures, where the receipt of a welfare program by one generation causes increased participation in the next generation. Our context is Norway’s disability insurance (DI) system. To overcome the challenge of correlated unobservables across generations, we take advantage of random assignment of judges to DI applicants whose cases are initially denied. Some appeal judges are systematically more lenient, which leads to random variation in the probability a parent will be allowed DI. Using this exogenous variation, we find strong evidence for a causal link across generations: when a parent is allowed DI at the appeal stage, their adult child’s participation over the next five years increases by 6 percentage points. This effect grows over time, rising to 12 percentage points after 10 years. Although these findings are specific to our setting, they highlight that welfare reforms can have long-lasting effects on program participation, since any original effect on the current generation could be reinforced by changing the participation behavior of their children as well. The detailed nature of our data allows us to compare the intergenerational transmission with spillover effects in other networks and to explore mechanisms.

Country
Norway
Keywords

I38, JEL classification: J62, JEL classification: H53, ddc:330, Intergenerational welfare transmission, VDP::Matematikk og Naturvitenskap: 400::Matematikk: 410::Statistikk: 412, JEL classification: I38, Intergenerational welfare transmission, welfare cultures, disability insurance, Intergenerational welfare transmission; welfare cultures; disability insurance, J62, H53, intergenerational welfare transmission, welfare cultures, intergenerational welfare transmission, disability insurance, welfare cultures, disability insurance, jel: jel:J62, jel: jel:H53, jel: jel:I38

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    popularity
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    Top 1%
    influence
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    Top 10%
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
222
Top 1%
Top 1%
Top 10%
Green
bronze