Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250601 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14940
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
unemployment
transfer programs
transparency
sanctions
uncertainty
work requirements
field experiments
information treatment
JEL: 
J68
D83
C93
Document Type: 
Working Paper

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