The Role of Monetary and Non-Monetary Job Quality Components in Determining Welfare Exit

Abstract

AbstractContemporary welfare policies in many Western countries limit means tested public assistance for the long-term unemployed and spur rapid movement into the labor market. Studies on welfare use determinants that traced these policy changes focused on individuals’ characteristics, economic condition, and various policy components. Little attention was paid to welfare recipients’ job quality or its role in determining welfare exit. The present study examined the contribution of various job quality aspects, beyond wages, to welfare exit among welfare recipients in Israel. We considered the use of workers’ own skills and occupation, existence of standard employment contract (versus temporary), irregular work schedule, and application of mandatory and non-mandatory non-wage compensation attributes. The data derive from a national panel survey of 2,800 single-mother recipients of welfare in 2003. The results indicate the importance of these job components for welfare exit, above and beyond wages. Implications for policy are discussed.