%0 Report %A Cairo, Sofie %A Mahlstedt, Robert %T Transparency of the Welfare System and Labor Market Outcomes of Unemployed Workers %D 2021 %8 2021 Dec %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 14940 %U https://www.iza.org/index.php/publications/dp14940 %X 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. %K unemployment %K transfer programs %K transparency %K sanctions %K uncertainty %K work requirements %K field experiments %K information treatment