Abstract
We study how the transparency of welfare systems affects labor market outcomes of unemployed workers in a large-scale field experiment. Our low-cost information intervention uses a personalized online tool that informs benefit recipients about their personal risk of a benefit reduction when not complying with a work requirement. We find disparate effects reflecting individuals' job search status. Providing personalized information improves labor market outcomes by mitigating the pressure to accept unstable part-time jobs among active job seekers with a low sanction risk. Inactive persons with a high sanction risk leave welfare and rely on alternative income support more frequently.
| Original language | English |
|---|---|
| Place of Publication | Bonn |
| Publisher | IZA |
| Number of pages | 42 |
| Publication status | Published - Dec 2021 |
| Series | IZA Discussion Paper |
|---|---|
| Number | 14940 |
| ISSN | 2365-9793 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Unemployment
- Transfer programs
- Transparency
- Sanctions
- Uncertainty
- Work requirements
- Field experiments
- Information treatment
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