Using a field experiment in the Netherlands, we study the labor market and the budgetary effects of a more generous earnings exemption policy. The policy allowed claimants to keep more earnings for a longer time. In line with expectations, we find positive effects on employment, almost entirely...

Compliance requirements, such as active job search, in combination with monitoring and sanctions are a commonly used tool to induce effort among social assistance claimants and achieve reemployment as quickly as possible. We conduct a randomized field experiment in the Netherlands to test two...