Variable Definition and Descriptive Statistics

82 The Journal of Human Resources

B. Variable Definition and Descriptive Statistics

To answer the questions regarding immigrant assimilation and welfare participation raised in the introduction, we estimate models where the dependent variable is a binary variable equal to one if the household received SA for at least one month during the year, and equal to zero otherwise. The Swedish municipalities provided data on social assistance benefit levels. We were able to assign a social assistance norm, which determines the benefit level, to each household in the sample in 1994 and in 1996. The municipality in which the household resides, as well as the family composition, such as marital status, ages, and number of children, determines the norms. Unfortunately, we have not been able to obtain similar information for the other years. For that reason, we assign the 1994 norms to all years prior to 1995 and the 1996 norms to the years 1995 and 1996. 8 By including the norms into the models, we can obtain estimates of the effects of higher benefit levels on public assistance utilization. To control for local variation in unemployment rates, we include county unemployment rates, obtained from Sta- tistics Sweden’s labor force surveys. These are assigned to each household in each year based on the household’s region of residence. In Table 1, we present average characteristics for the household by welfare recip- iency for the period 1990 to 1996. In general, we observe that households on welfare are younger, less educated and, to a larger degree, single, as compared to households not on public assistance. 9 For immigrants, we observe that SA recipients have on average been in the country for a shorter period than those households off SA. Inter- estingly, refugee households have on average higher post-secondary education com- pared to native Swedish and nonrefugee immigrant households. Moreover, the frac- tion of college-educated households receiving SA is substantially larger among refugees than among the other two groups.

V. Trends and Differences in Welfare Participation