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Germany might be an example to look at this. We have welfare that's paid out wherever you live. It's conditional in so far that it's expected that you look for a job and aren't rich, but that's about it. It has a fixed money component (~400€/month) and covers rent (up to some amount that's set locally, depending on the local rent prices), utilities, health insurance etc directly. Therefore, if you're okay with the amount of money you'd get, you'd probably be better off if you're not living in a large city, because, rent aside, city living is a bit more expensive. Also, considering that you're supposed to look for work, living in a city (where the jobs are, if they are anywhere) would increase the chances of you being expected to take a job, which you wouldn't have to in more rural areas. People still move to the cities, even though the job market isn't promising for low-skill workers there either. There are certainly many reasons, but some I believe to be involved: it's harder to get an apartment when you're on social benefits (even more so if not in the community you're currently living in), it's harder to live in a rural area if you don't have a car (which you'll likely not be able to buy while on benefits), few people have the means to move when money is tight. |