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In this paper, we focus on a novel and potentially important aspect of the workfare policy in the Danish labor market, namely its effect on crime. We do this by exploiting two policy changes. First, we examine the effect of a series of national welfare reforms introduced during the 1990s. Those reforms strengthened the work requirement for the young welfare recipients and were introduced gradually, starting with younger welfare participants first. We exploit the differential introduction of workfare reform across different age groups as the exogenous variation. Second, we use a unique policy experiment that began in 1987 by an innovative mayor of the Danish city of Farum, where he imposed a 100 % work or training requirement for all welfare recipients immediately from the date of enrollment. By comparing the changes in crime rates among the welfare recipients in Farum before and after 1987 with that of the rest of Denmark, we identify the effect of workfare on the crime rate.

Purpose: This systematic review studied the impact of exhaustion of unemployment benefits on the exit rate out of unemployment and into employment prior to benefit exhaustion or shortly thereafter. Method: We followed Campbell Collaboration guidelines to prepare this review, and ultimately located 12 studies for final analysis and interpretation. Twelve studies could be included in the data synthesis. Results: We found clear evidence that the prospect of exhaustion of benefits results in a significantly increased incentive for finding work. Discussion: The theoretical suggestion that the prospect of exhaustion of benefits results in an increased incentive for finding work has been confirmed empirically by measures from seven different European countries, the United States, and Canada. The results are robust in the sense that sensitivity analyses evidenced no appreciable changes in the results. We found no strong indication of the presence of publication bias.