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Caseworker's Discretion and the Effectiveness of Welfare-to-Work Programs

Author

Listed:
  • Bolhaar, Jonneke

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ketel, Nadine

    (Vrije Universiteit Amsterdam)

  • van der Klaauw, Bas

    (Vrije Universiteit Amsterdam)

Abstract

In this paper we focus on the role of caseworkers in the assignment and take-up of welfare-to-work programs. We conduct a field experiment that generates exogenous variation in the assignment to different policy regimes to caseworkers. The experiment allows us to provide evidence on the effectiveness of welfare-to-work programs and to study how caseworkers exploit their discretion in assigning these programs to welfare recipients. We find substantial heterogeneity in how caseworkers assign welfare-to-work programs. Participation in the experiment and learning about the effectiveness of the different programs does not induce caseworkers to focus more on the effective programs. This implies that obtaining knowledge about welfare-to-work programs is not enough to improve policy, also effort on implementation is required.

Suggested Citation

  • Bolhaar, Jonneke & Ketel, Nadine & van der Klaauw, Bas, 2018. "Caseworker's Discretion and the Effectiveness of Welfare-to-Work Programs," IZA Discussion Papers 11666, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11666
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    References listed on IDEAS

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    1. Gerard J. van den Berg & Bas van der Klaauw, 2006. "Counseling And Monitoring Of Unemployed Workers: Theory And Evidence From A Controlled Social Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 895-936, August.
    2. Schmieder, Johannes F & Trenkle, Simon, 2020. "Disincentive effects of unemployment benefits and the role of caseworkers," Journal of Public Economics, Elsevier, vol. 182(C).
    3. Gordon B. Dahl & Andreas Ravndal Kostøl & Magne Mogstad, 2014. "Family Welfare Cultures," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1711-1752.
    4. Jonneke Bolhaar & Nadine Ketel & Bas van der Klaauw, 2019. "Job Search Periods for Welfare Applicants: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 92-125, January.
    5. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    6. Graversen, Brian Krogh & van Ours, Jan C., 2008. "How to help unemployed find jobs quickly: Experimental evidence from a mandatory activation program," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2020-2035, October.
    7. Stefanie Behncke & Markus Frölich & Michael Lechner, 2009. "Targeting Labour Market Programmes - Results from a Randomized Experiment," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(III), pages 221-268, September.
    8. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    9. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
    10. Lechner, Michael & Smith, Jeffrey, 2007. "What is the value added by caseworkers?," Labour Economics, Elsevier, vol. 14(2), pages 135-151, April.
    11. Bell, Stephen H. & Orr, Larry L., 2002. "Screening (and creaming?) applicants to job training programs: the AFDC homemaker-home health aide demonstrations," Labour Economics, Elsevier, vol. 9(2), pages 279-301, April.
    12. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
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    2. Manudeep Bhuller & Henrik Sigstad, 2022. "2SLS with Multiple Treatments," Papers 2205.07836, arXiv.org, revised Mar 2024.

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    More about this item

    Keywords

    welfare-to-work; field experiment; caseworkers;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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