TY - UNPB
T1 - Do Generous Earnings Exemptions Stimulate Welfare Claimants to Find a Job? Evidence From a Field Experiment in the Netherlands
AU - Verlaat, Timo
AU - Rosenkranz, Stephanie
AU - Groot, Loek F. M.
AU - Sanders, Mark
PY - 2023/5/9
Y1 - 2023/5/9
N2 - Using a field experiment in the Netherlands, we study the labor market and the budgetary effects of a more generous earnings exemption policy. The policy allowed claimants to keep more earnings for a longer time. In line with expectations, we find positive effects on employment, almost entirely driven by part-time work. We also find improvements in claimants' income situation. Full-time employment appears unaffected both during the treatment period and post-treatment. Lastly, we find no evidence for effects on welfare expenditures. Our findings suggest that slight changes to financial work incentives can be an effective policy if one wishes to stimulate part-time work among benefit recipients. Different incentives are needed to promote full-time exit and self-suffciency.
AB - Using a field experiment in the Netherlands, we study the labor market and the budgetary effects of a more generous earnings exemption policy. The policy allowed claimants to keep more earnings for a longer time. In line with expectations, we find positive effects on employment, almost entirely driven by part-time work. We also find improvements in claimants' income situation. Full-time employment appears unaffected both during the treatment period and post-treatment. Lastly, we find no evidence for effects on welfare expenditures. Our findings suggest that slight changes to financial work incentives can be an effective policy if one wishes to stimulate part-time work among benefit recipients. Different incentives are needed to promote full-time exit and self-suffciency.
U2 - 10.2139/ssrn.4440531
DO - 10.2139/ssrn.4440531
M3 - Preprint
BT - Do Generous Earnings Exemptions Stimulate Welfare Claimants to Find a Job? Evidence From a Field Experiment in the Netherlands
PB - SSRN
ER -