This paper examines the role of life satisfactioninthe labor market behavior of workers receiving welfare benefits while working. Welfare stigma and other hard-to-observe factors may affect outcomes as on-the-job search and the duration until leaving welfare status. We utilize life satisfaction...

Using specific panel data of German welfare benefit recipients, we investigate the non-pecuniary life satisfaction effects of in-work benefits. Our empirical strategy combines difference-in-difference designs with synthetic control groups to analyze transitions of workers between unemployment,...