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Abstract

Monitoring and screening have been shown to be empirically important

in reducing the use of social insurance benefits. Most previous studies

have focused on ex-post effects of monitoring but

ex ante

effects from

monitoring could potentially be even more important. This paper

contributes to this literature by empirically studying whether monitoring

in the Swedish temporary parental benefit program affects future take-up

rates. We estimate the effects of being randomly selected into monitoring

on the take-up of temporary parental benefits during the following year.

The results suggest that parents who are selected into monitoring reduce

their future benefit take-up.