The nature and extent of welfare dependency

This thesis adopts multi-dimensional analysis to investigate the nature and extent of welfare dependency. Welfare dependency is defined as being severe (weak) if all (none) of the following are observed: (1) persistent use of welfare, (2) adverse association between welfare and family structure, (3) intergenerational transmission of welfare, (4) adverse association between welfare and attitudes/motivations. Evidence suggests that the persistent use of welfare exists to some extent, although welfare recipients display substantial efforts to get off welfare. Evidence of welfare effects on family structures is relatively weak since many of the studies are crude and subject to possible biases. Intergenerational transmission of welfare use is apparent whether other things are controlled or not. Attitudes are not found to be important in affecting the welfare use, ceteris paribus. Disadvantageous circumstances of the welfare recipients rather than "culture of poverty" or attractiveness of welfare are mainly responsible for the persistent use of welfare.