@TechReport{iza:izadps:dp14940, author={Cairo, Sofie and Mahlstedt, Robert}, title={Transparency of the Welfare System and Labor Market Outcomes of Unemployed Workers}, year={2021}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14940}, url={https://www.iza.org/publications/dp14940}, abstract={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.}, keywords={unemployment;transfer programs;transparency;sanctions;uncertainty;work requirements;field experiments;information treatment}, }