Social Assistance in Central and Eastern Europe: A trap or a springboard?

Theories of welfare dependency assert that means-tested income support is
self-defeating in the long-run. By offering out-of-work benefits
conditional on low income, they create work disincentives that lower
recipients economic resources both currently and in the future. This paper
uses the 2007 panel dataset of the EU-SILC to look into the relationship
between social assistance receipt and future income in eight Central and
East European countries with very different program features. In addition
to earnings, several other types of income are also examined.