Abstract: State actions impact the lives of citizens in general and government benefit recipients in particular. However, little is known about whether experiences of psychological costs among benefit recipients can be relieved by reducing compliance demands in interactions with the state. Across three studies, we provide evidence that reducing demands causes relief. In a survey experiment, we show that psychological costs experienced by Danish unemployment insurance recipients change in response to information about actual reduced compliance demands. In...
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Topics: 
Public economics
Demographic economics