Working Paper: CEPR ID: DP2986
Authors: Gerard J. van den Berg; Bas van der Klaauw
Abstract: We investigate the effect of counselling and monitoring on the individual employment transition rate. We theoretically analyse these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data concerning a social experiment with full randomization and compliance. The results show that counselling and monitoring do not affect the work exit rate. Monitoring causes a shift from informal to formal job searching. We combine our empirical results with the results from our theoretical analysis and the existing empirical literature to establish a comprehensive analysis of the effectiveness of these policies.
Keywords: active labour market policy; multitasking; randomized social experiment; search channels; search effort; treatment; unemployment duration
JEL Codes: J58; J64; J65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| counselling (L84) | work exit rate (J63) |
| monitoring (E63) | work exit rate (J63) |
| monitoring (E63) | shift from informal to formal job searching (J46) |