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Knockin’ on Employment’s Door: The Power of Caseworker Beliefs on Job and Health Outcomes for the Long-Term Unemployed

Author

Listed:
  • Nielsen, Søren Albeck

    (Aarhus University)

  • Rosholm, Michael

    (Aarhus University)

Abstract

This study examines the impact of caseworker beliefs on employment and health outcomes among long-term unemployed social assistance recipients in Denmark. Exploiting as-if random caseworker assignment, an instrumental variables approach, and a novel measure of "Caseworker Job Orientation", we estimate the effects of caseworkers’ job beliefs regarding their clients. Results indicate that clients assigned to caseworkers with stronger innate job beliefs experience substantial improvements in employment rates, earnings, and educational enrollment. Additionally, positive effects on health are observed, particularly among clients with pre-existing health conditions. These findings underscore the role of caseworker attitudes in shaping client trajectories, offering policy insights into enhancing labor market re-entry strategies.

Suggested Citation

  • Nielsen, Søren Albeck & Rosholm, Michael, 2025. "Knockin’ on Employment’s Door: The Power of Caseworker Beliefs on Job and Health Outcomes for the Long-Term Unemployed," IZA Discussion Papers 17970, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17970
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    References listed on IDEAS

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    1. Stefanie Behncke & Markus Frölich & Michael Lechner, 2010. "A Caseworker Like Me - Does The Similarity Between The Unemployed and Their Caseworkers Increase Job Placements?," Economic Journal, Royal Economic Society, vol. 120(549), pages 1430-1459, December.
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    3. 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.
    4. Michael Rosholm, 2014. "Do case workers help the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-72, August.
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    Keywords

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    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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