Abstract: | Intergenerational transmission of welfare dependency has received increasing attention among social scientists, especially in the United States, as greater availability of longitudinal data has shed new light on this issue. It remains unclear, however, to what extent the intergenerational correlation of welfare recipiency observed in the United States reflects or interacts with unobserved variables, the racial composition of the population, and the institutional structure of social policies. This study focuses on Sweden, a country with an ethnically homogenous population and institutional social policy structures that differ from those in the United States. It utilizes an internationally unique longitudinal data set to test hypotheses on the inheritance of welfare benefit recipiency as indicated by reliance on means‐tested social assistance. A clear intergenerational effect is observed. This effect, however, reflects a combination of social assistance in the family of origin, children's school adjustment, and parental criminality. Children who lack this combination of problems do not show signs of intergenerational welfare dependency. |