This paper investigates the effects of application processing times on welfare applicants’ benefit and employment outcomes. For causal inference, we exploit exogenous variation in application processing times stemming from the random assignment of caseworkers. Our findings indicate that longer application processing times deter applicants from receiving benefits, particularly those with better labor market prospects. In contrast, for applicants who eventually receive benefits, longer processing times reduce labor market attachment and increase benefit dependency. Finally, using exogenous variation in caseworkers’ provision of benefit prepayments, we find that the receipt of welfare prepayments increases the employment and earnings of awarded applicants. This suggests that reduced financial stress improves successful job search.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.