IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9786.html
   My bibliography  Save this paper

Job-Search Periods for Welfare Applicants: Evidence from a Randomized Experiment

Author

Listed:
  • Bolhaar, Jonneke

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ketel, Nadine

    () (Vrije Universiteit Amsterdam)

  • van der Klaauw, Bas

    () (Vrije Universiteit Amsterdam)

Abstract

This paper studies mandatory job-search periods for welfare applicants. During this period the benefits application is put on hold and the applicant is obliged to make job applications. We combine a randomized experiment with detailed administrative data to investigate the effects of imposing a job-search period. We find strong and persistent effects on the probability to collect welfare benefits. The reduced benefits are fully compensated by increased earnings from work. Furthermore, we do not find evidence of adverse consequences for the most vulnerable applicants. Our results therefore suggest that a job-search period is an effective instrument for targeting welfare-benefits applicants.

Suggested Citation

  • Bolhaar, Jonneke & Ketel, Nadine & van der Klaauw, Bas, 2016. "Job-Search Periods for Welfare Applicants: Evidence from a Randomized Experiment," IZA Discussion Papers 9786, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9786
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp9786.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 531-580.
    2. Matthew Rabin & Ted O'Donoghue, 1999. "Doing It Now or Later," American Economic Review, American Economic Association, vol. 89(1), pages 103-124, March.
    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. Henrik Jacobsen Kleven & Wojciech Kopczuk, 2011. "Transfer Program Complexity and the Take-Up of Social Benefits," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 54-90, February.
    5. Parsons, Donald O, 1991. "Self-Screening in Targeted Public Transfer Programs," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 859-876, August.
    6. C. Fritz Foley, 2011. "Welfare Payments and Crime," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 97-112, February.
    7. Edward Vytlacil & James J. Heckman, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May.
    8. 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.
    9. Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, vol. 41(1), pages 73-99, February.
    10. Saurabh Bhargava & Dayanand Manoli, 2015. "Psychological Frictions and the Incomplete Take-Up of Social Benefits: Evidence from an IRS Field Experiment," American Economic Review, American Economic Association, vol. 105(11), pages 3489-3529, November.
    11. Bas Van der Klaauw & Jan C. Van Ours, 2013. "Carrot And Stick: How Re‐Employment Bonuses And Benefit Sanctions Affect Exit Rates From Welfare," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(2), pages 275-296, March.
    12. Guido W. Imbens & Donald B. Rubin, 1997. "Estimating Outcome Distributions for Compliers in Instrumental Variables Models," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 555-574.
    13. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    2. Cockx, Bart & Declercq, Koen & Dejemeppe, Muriel & Inga, Leda & Van der Linden, Bruno, 2020. "Switching from an inclining to a zero-level unemployment benefit profile: Good for work incentives?," Labour Economics, Elsevier, vol. 64(C).
    3. Cottier, Lionel & Flueckiger, Yves & Kempeneers, PIerre & Lalive, Rafael, 2018. "Does Job Search Assistance Really Raise Employment?," CEPR Discussion Papers 13133, C.E.P.R. Discussion Papers.
    4. Bolhaar, Jonneke & Ketel, Nadine & van der Klaauw, Bas, 2020. "Caseworker's discretion and the effectiveness of welfare-to-work programs," Journal of Public Economics, Elsevier, vol. 183(C).
    5. Louis N. Christofides & Christos Koutsampelas, 2019. "The social protection system in Cyprus: Recent initiatives and labour market implications," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 13(2), pages 3-47, December.
    6. Schiprowski, Amelie, 2017. "The Role of Caseworkers in Unemployment Insurance: Evidence from Unplanned Absences," IZA Discussion Papers 11040, Institute of Labor Economics (IZA).
    7. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    8. Cammeraat, Emile & Jongen, Egbert L. W. & Koning, Pierre, 2017. "Preventing NEETs during the Great Recession: The Effects of a Mandatory Activation Program for Young Welfare Recipients," IZA Discussion Papers 11090, Institute of Labor Economics (IZA).
    9. Lucy Kok & Caren Tempelman & Pierre Koning & Lennart Kroon & Caroline Berden, 2017. "Do Incentives for Municipalities Reduce the Welfare Caseload? Evaluation of a Welfare Reform in the Netherlands," De Economist, Springer, vol. 165(1), pages 23-42, March.
    10. Cammeraat, Emile & Jongen, Egbert L. W. & Koning, Pierre, 2017. "Preventing NEETs during the Great Recession: The Effects of a Mandatory Activation Program for Young Welfare Recipients," IZA Discussion Papers 11090, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van der Klaauw, Bas & Ziegler, Lennart, 2019. "A Field Experiment on Labor Market Speeddates for Unemployed Workers," CEPR Discussion Papers 13516, C.E.P.R. Discussion Papers.
    2. van der Klaauw, Bas & Ziegler, Lennart, 2019. "A Field Experiment on Labor Market Speeddates for Unemployed Workers," IZA Discussion Papers 12140, Institute of Labor Economics (IZA).
    3. Jeff Borland, 2014. "Dealing with unemployment: What should be the role of labour market programs?," Evidence Base, Australia and New Zealand School of Government, vol. 2014(4), pages 1-21, December.
    4. Phillips, David C., 2014. "Getting to work: Experimental evidence on job search and transportation costs," Labour Economics, Elsevier, vol. 29(C), pages 72-82.
    5. Mergele, Lukas & Weber, Michael, 2020. "Public employment services under decentralization: Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 182(C).
    6. Nguyen, Ha Trong & Le, Huong Thu & Connelly, Luke B., 2019. "Who’s declining the “free lunch”? New evidence from the uptake of public child dental benefits," EconStor Preprints 208378, ZBW - Leibniz Information Centre for Economics.
    7. Altmann, Steffen & Falk, Armin & Jäger, Simon & Zimmermann, Florian, 2018. "Learning about job search: A field experiment with job seekers in Germany," Journal of Public Economics, Elsevier, vol. 164(C), pages 33-49.
    8. Michèle Belot & Philipp Kircher & Paul Muller, 2019. "Providing Advice to Jobseekers at Low Cost: An Experimental Study on Online Advice," Review of Economic Studies, Oxford University Press, vol. 86(4), pages 1411-1447.
    9. Haller, Andreas & Staubli, Stefan & Zweimüller, Josef, 2020. "Designing Disability Insurance Reforms: Tightening Eligibility Rules or Reducing Benefits?," CEPR Discussion Papers 15121, C.E.P.R. Discussion Papers.
    10. Tuomala, Juha & Hämäläinen, Kari & Hämäläinen, Ulla, 2014. "The labour market impacts of a youth guarantee: lessons for Europe?," Working Papers 60, VATT Institute for Economic Research.
    11. Fallesen, Peter & Geerdsen, Lars Pico & Imai, Susumu & Tranæs, Torben, 2018. "The effect of active labor market policies on crime: Incapacitation and program effects," Labour Economics, Elsevier, vol. 52(C), pages 263-286.
    12. Michael Rosholm, 2014. "Do case workers help the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-72, August.
    13. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
    14. Landeghem, Bert Van & Cörvers, Frank & Grip, Andries de, 2017. "Is there a rationale to contact the unemployed right from the start? Evidence from a natural field experiment," Labour Economics, Elsevier, vol. 45(C), pages 158-168.
    15. Linda Babcock & William Congdon & Lawrence Katz & Sendhil Mullainathan, 2012. "Notes on behavioral economics and labor market policy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-14, December.
    16. Jonas Maibom & Michael Rosholm & Michael Svarer, 2017. "Experimental Evidence on the Effects of Early Meetings and Activation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 541-570, July.
    17. van der Klaauw, Bas, 2014. "From micro data to causality: Forty years of empirical labor economics," Labour Economics, Elsevier, vol. 30(C), pages 88-97.
    18. Arni, Patrick & Schiprowski, Amelie, 2019. "Job search requirements, effort provision and labor market outcomes," Journal of Public Economics, Elsevier, vol. 169(C), pages 65-88.
    19. Thomas Huizen & Janneke Plantenga, 2014. "Job Search Behaviour and Time Preferences: Testing Exponential Versus Hyperbolic Discounting," De Economist, Springer, vol. 162(3), pages 223-245, September.
    20. Liebert, Helge, 2019. "Does external medical review reduce disability insurance inflow?," Journal of Health Economics, Elsevier, vol. 64(C), pages 108-128.

    More about this item

    Keywords

    active labor-market policies; welfare-to-work; job search; randomized experiment;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9786. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Holger Hinte). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.