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UCLouvain - Vincent Dautel, LISER
By UCLouvain Economics Seminar

Vincent Dautel


will give a presentation on

Investigating neighbourhood effects in welfare-to-work transitions


We analyse the existence and underlying mechanisms of neighbourhood effects in welfare-to-work transitions in the context of a dominant proportion of foreign-born individuals. The analysis is based on Luxembourg social security longitudinal data, covering 2001–2015, and provides precise information at the postcode level, corresponding mostly to streets. Our identification strategy exploits the exogenous variations provided by the very fine data granularity and follows two paths. We first examine interactions among all neighbours using an individual-level analysis, before focusing on interactions among only welfare recipients using a matched-pair analysis. This second step allows us to deal with the mediating effect of welfare recipients’ citizenship. The main findings highlight the existence of neighbourhood effects in welfare-to-work transitions, which are also affected by the characteristics of the neighbours, including their citizenship. These characteristics suggest that social norms and/or stigma, prevail over the support for welfare recipients to find a job, and over the in-group support for welfare recipients. The matched-pair analysis provides contrasting results across citizenship for individuals from large-sized citizenship groups (interactions within the own group) and individuals from medium-sized groups (interactions between groups).

Joint with Alessio Fusco