Working Paper: CEPR ID: DP7233
Authors: Brian Krogh Graversen; Jan C. van Ours
Abstract: In an experimental setting some Danish unemployed workers were assigned to an activation program while others were not. Unemployed who were assigned to the activation program found a job more quickly. We show that the activation effect increases with the distance between the place of residence of the unemployed worker and the place where the activation took place. We also find that the quality of the post-unemployment jobs was not affected by the activation program. Both findings confirm that activation programs mainly work because they are compulsory and unemployed don't like them.
Keywords: activation program; 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 |
|---|---|
| Participation in the mandatory activation program (J68) | Job finding rate (J68) |
| Compulsory nature of the activation program (C87) | Search intensity (D83) |
| Distance from the activation program (C89) | Job finding rate (J68) |
| Activation program (J68) | Quality of post-unemployment jobs (J68) |