Events at CERGE-EI
Monday, 22 September, 2014 | 16:30 | Applied Micro Research Seminar
Prof. Andrew Oswald: “Human Well-Being and In-Work Benefits: A Randomized Controlled Trial”
The University of Warwick, United Kingdom
Authors: Richard Dorsett and Andrew J. Oswald
Abstract: Many politicians believe they can intervene in the economy to improve people’s lives. But can they? In a social experiment carried out in the United Kingdom, extensive in-work support was randomly assigned among 16,000 disadvantaged people. We follow a sub-sample of 3,500 single parents for 5 ensuing years. The results reveal a remarkable, and troubling, finding. Long after eligibility had ceased, the treated individuals had substantially lower psychological well-being, worried more about money, and were increasingly prone to debt. Thus helping people apparently hurt them. We discuss a behavioral framework consistent with our findings and reflect on implications for policy.
JEL codes: I31, D03, D60, H11, J38.
Full Text: "Human Well-Being and In-Work Benefits: A Randomized Controlled Trial"
