Working Paper: CEPR ID: DP6057
Authors: Brian Krogh Graversen; Jan C. van Ours
Abstract: This paper investigates how a mandatory activation program in Denmark affects the job finding rate of unemployed workers. The activation program was introduced in an experimental setting where about half of the workers who became unemployed in the period from November 2005 to March 2006 were randomly assigned to the program while the other half was not. It appears that the activation program is very effective. The median unemployment duration of the control group is 14 weeks, while it is 11.5 weeks for the treatment group. The analysis shows that the job finding rate in the treatment group is 30% higher than in the control group. This result is mainly driven by the more intensive contacts between the unemployed and the public employment service.
Keywords: experiment; unemployment; duration; unemployment insurance
JEL Codes: C41; H55; J64; J65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| stick component (Y20) | treatment effect (C22) |
| threat effect (C92) | treatment effect (C22) |
| after-program effect (J68) | treatment effect (C22) |
| mandatory activation program (C88) | job finding rate (J68) |
| mandatory activation program (C88) | median unemployment duration (J64) |
| treatment effect (C22) | job finding rate (J68) |
| treatment group (C92) | unemployment duration (J64) |
| job search programs (J68) | job finding rates (J68) |
| training programs (M53) | job finding rates (J68) |
| treatment effect (C22) | unemployment exit rate (J63) |