Micro‐level dynamics of social assistance receipt: Evidence from four European countries

This study investigated the monthly dynamics of social assistance benefit receipt – in particular the incidence of long‐term benefit receipt – in four European countries: Luxembourg, The Netherlands, Norway and Sweden. The analysis is based on four separate administrative panel data sets, each covering the 96‐month period from January 2001 to December 2008. Benefit dynamics were found to vary considerably across countries. In the two Nordic countries, long‐term benefit receipt was found to be a rare exception. Most recipients, however, had multiple spells and the majority of benefit leavers returned to benefits within a few months of leaving. In Luxembourg and The Netherlands, long‐term benefit receipt was frequent, but benefit leavers were much less likely to return to benefit receipt after exit. The total duration of benefit receipt per individual across spells was two to three times as high in The Netherlands and Luxembourg as in Norway and Sweden.