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 jobsearch period is an effective instrument for targeting welfare-benefits applicants.
Url or DOI
Country
Netherlands
Publication Year
2016
Labour market services
Job-search assistance
Vulnerable groups
Other disadvantaged
Funding Source
Other
Outcome Variable
Employment status
Income/wages
Data Source
Administrative
Evaluation Method
IV
Randomization