Seminar: The role of active labour market policies in the transition from social assistance to employment

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Bas van der Klaauw (VU)

Discussant: Marloes de Graaf-Zijl (CPB)

Language: English

Registration:  Please register by sending an email to seminars@cpb.nl.

Abstract subject
We investigate the implications of a search period for welfare applicants on re-employment. In this period of four weeks applicants are supposed to actively search for work. To look at the implications of a search period we ran a unique field experiment in which individuals received differential treatment. We find a strong and persistent negative effect of a search period on the probability to receive welfare. The effect is significant up to six months after applying for welfare. The total amount of benefits paid out in six months is reduced by 27\%. There is no spillover to other benefit schemes and the lower income from welfare benefits is almost fully (91\%) compensated by more income from wages. A search period is most effective for applicants that are highly educated and younger than 40. Our findings fit in the literature that small (financial) incentives matter for welfare recipients.

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