DP2986 Counselling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment
|Author(s):||Gerard van den Berg, Bas van der Klaauw|
|Publication Date:||October 2001|
|Keyword(s):||active labour market policy, multi-tasking, randomized social experiment, search channels, search effort, treatment, unemployment duration|
|JEL(s):||J58, J64, J65|
|Programme Areas:||Labour Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2986|
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.