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Investigating the Impact of Integration Agreements on Labor Market Outcomes for Welfare Recipients: A Randomized Controlled Trial

Author

Listed:
  • Gerard J. van den Berg
  • Sarah Bernhard
  • Gesine Stephan
  • Arne Uhlendorff

    (CREST, Palaiseau, France)

Abstract
Integration agreements (IA) outline the efforts the jobseeker should undertake to find employment and specify the services that the caseworker would provide to assist them in their job search. The agreements include a declaration of legal consequences, and punitive benefit sanctions could be imposed based on this declaration. Recent evidence has shown that these IAs are effective for recipients of unemployment insurance (UI) benefits. Using a randomized controlled trial, this paper investigates whether IAs support the integration of welfare benefit recipients into the labor market. This integration is of utmost importance from a policy and societal point of view. Newly registered recipients of means-tested benefits were randomly assigned to one of three groups, receiving either a) a standard integration agreement with the accompanying declaration of legal consequences at the beginning of the welfare spell, or b) an integration agreement without such a declaration, or c) no integration agreement within the first six months of the benefit receipt. Findings indicate that, on average, group assignment has no effect on the transition out of welfare or entry into employment. Based on a Random Forest analysis to capture heterogeneity, we find no effect by the degree of labor market prospects either.

Suggested Citation

  • Gerard J. van den Berg & Sarah Bernhard & Gesine Stephan & Arne Uhlendorff, 2024. "Investigating the Impact of Integration Agreements on Labor Market Outcomes for Welfare Recipients: A Randomized Controlled Trial," Working Papers 2024-12, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2024-12
    as

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    References listed on IDEAS

    as
    1. Luc Behaghel & Bruno Cr?pon & Marc Gurgand, 2014. "Private and Public Provision of Counseling to Job Seekers: Evidence from a Large Controlled Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 142-174, October.
    2. Gerard J. van den Berg & Bas van der Klaauw & Jan C. van Ours, 2004. "Punitive Sanctions and the Transition Rate from Welfare to Work," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 211-241, January.
    3. Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    4. Joseph P. Romano & Michael Wolf, 2005. "Exact and Approximate Stepdown Methods for Multiple Hypothesis Testing," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 94-108, March.
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    6. Ruud Gerards & Riccardo Welters, 2022. "Does eliminating benefit eligibility requirements improve unemployed job search and labour market outcomes?," Applied Economics Letters, Taylor & Francis Journals, vol. 29(10), pages 955-958, June.
    7. van den Berg, Gerard J. & Kunaschk, Max & Lang, Julia & Stephan, Gesine & Uhlendorff, Arne, 2023. "Predicting Re-Employment: Machine Learning versus Assessments by Unemployed Workers and by Their Caseworkers," IZA Discussion Papers 16426, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    Social assistance; unemployment; active labor market policy; field experiment;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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