Gordon Dahl, Anne Gielen, 29 May 2018

Although an extensive literature has documented intergenerational correlations in welfare receipt, there is little evidence on whether this relationship is causal. Do benefit schemes create a culture of dependency within families? This column finds that children of parents in the Netherlands who were pushed out of disability insurance following a reform were less likely to participate in the programme as adults. The fiscal spillovers from these intergenerational links have a sizable effect on the government’s long-term budget.

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