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Does leaving welfare improve health? Evidence for Germany
Martin Huber1, Michael Lechner, Conny Wunsch
1Swiss Institute for Empirical Economic Research, University of St. Gallen, Switzerland.
Health Economics
|March 12, 2011
Summary
Employment significantly improves mental health for welfare recipients, especially males with poor initial health. Welfare-to-work programs show mixed results, with no significant health benefits observed.
Area of Science:
- Health Economics
- Social Policy
- Public Health
Background:
- Welfare recipients often face health challenges.
- The transition from welfare to employment can impact health outcomes.
- The effectiveness of welfare-to-work programs on health is not well understood.
Purpose of the Study:
- To investigate the health effects of moving from welfare to employment.
- To assess the impact of welfare-to-work programs on health.
- To identify specific groups benefiting most from employment transitions.
Main Methods:
- Utilized linked administrative and survey data from German welfare recipients.
- Applied semi-parametric propensity score matching estimators.
- Analyzed effects on both physical and mental health outcomes.
Main Results:
- Employment transition significantly boosts (mental) health.
- Positive health effects are more pronounced in males and those with poor initial health.
- Welfare-to-work programs, including subsidized jobs, yielded ambiguous and mostly insignificant health effects.
Conclusions:
- Moving to employment is beneficial for the health of welfare recipients.
- Targeted support may be needed for welfare-to-work programs to demonstrate health benefits.
- Employment appears to be a key determinant of improved health for this population.
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