Is There a "Race-to-the-Bottom" in the Setting of Welfare Benefit Levels?: Evidence from a Policy Intervention

Is There a "Race-to-the-Bottom" in the Setting of Welfare Benefit Levels? : Evidence from a Policy Intervention

Dahlberg, Matz (författare): Uppsala universitet,Nationalekonomiska institutionen,Institutet för arbetsmarknadspolitisk utvärdering (IFAU)

Edmark, Karin (författare): Uppsala universitet,Nationalekonomiska institutionen,Institutet för arbetsmarknadspolitisk utvärdering (IFAU)

(creator_code:org_t)

Elsevier BV, 2008
2008
Engelska.
Ingår i: Journal of Public Economics. - : Elsevier BV. - 0047-2727 .- 1879-2316. ; 92:5-6, s. 1193-1209

Relaterad länk:: http://www.iipf.org/...; visa fler...; https://urn.kb.se/re...; https://doi.org/10.1...; visa färre...

Abstract Ämnesord

Stäng

In this paper we investigate whether local governments react on the welfare benefit levels in neighboring jurisdictions when setting their own benefit levels. We solve the simultaneity problem arising from the welfare game by utilizing a policy intervention; more specifically, we use a centrally geared exogenous placement of a highly welfare prone group (refugees) among Swedish municipalities as an instrument. The IV estimates indicate that there exists a "race-to-the-bottom" and that the effect is economically as well as statistically significant; if the neighboring municipalities decrease their welfare benefit level by 100 SEK, a municipality decreases its benefit level with approximately 41 SEK. This result is robust to several alternative model specifications.

Om ämnet

Kungliga biblioteket hanterar dina personuppgifter i enlighet med EU:s dataskyddsförordning (2018), GDPR. Läs mer om hur det funkar här.
Så här hanterar KB dina uppgifter vid användning av denna tjänst.