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Does Job-Search Assistance Affect Search Effort and Outcomes ? A Microeconometric Analysis of Public Versus Private Search Methods

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  • Denis Fougère

    (Crest)

  • Jacqueline Pradel

    (Crest)

  • Muriel Roger

    (Crest)

Abstract

In this paper, we examine the disincentive effects of the public employment serviceon the search effort of unemployed workers and on their exit rate from unemployment.For that purpose, we specify a structural search model with fixed and variablecosts of search in which unemployed workers select their optimal search intensitygiven the exogenous arrival rate of job offers coming from the public employmentagency. Because the theoretical effect of an increase in this exogenous job offer arrivalrate on the structural exit rate from unemployment is ambiguous, we estimatethis model using individual unemployment duration data. Our results show that theexit rate from unemployment increases with the arrival rate of job contacts obtainedby the public employment service, especially for low-educated and low-skilled workers.They also show that the search effort is more costly for low-educated womenand low-skilled adult unemployed workers. This last result suggests that a publicemployment agency that matches searchers and employers is beneficial, in the sensethat it saves searchers in terms of search costs they would otherwise bear.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2005-33.

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Date of creation: 2005
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Handle: RePEc:crs:wpaper:2005-33

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References

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  1. John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
  2. Burdett, Kenneth & Ondrich, Jan I, 1985. "How Changes in Labor Demand Affect Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 1-10, January.
  3. van den Berg, Gerard J & van der Klaauw, Bas, 2001. "Counselling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment," CEPR Discussion Papers 2986, C.E.P.R. Discussion Papers.
  4. Fougère, Denis & Kramarz, Francis & Magnac, Thierry, 2000. "Youth Employment Policies In France," CEPR Discussion Papers 2394, C.E.P.R. Discussion Papers.
  5. Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January.
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  13. van der Klaauw, Bas & van Vuuren, Aico & Berkhout, Peter, 2005. "Labor market prospects search intensity and the transition from college to work," Working Paper Series 2005:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  16. Lindeboom, Maarten & van Ours, Jan C & Renes, Gusta, 1994. "Matching Employers and Workers: An Empirical Analysis on the Effectiveness of Search," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 45-67, January.
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Citations

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Cited by:
  1. Bergemann, Annette & van den Berg, Gerard J, 2007. "Active Labour Market Policy Effects for Women in Europe - A Survey," CEPR Discussion Papers 6034, C.E.P.R. Discussion Papers.
  2. Fougère, Denis & Pradel, Jacqueline & Roger, Muriel, 2008. "Does the Public Employment Service Affect Search Effort and Outcomes?," CEPR Discussion Papers 7095, C.E.P.R. Discussion Papers.
  3. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," ZEW Discussion Papers 07-042, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Ronald Bachmann & Daniel Baumgarten, 2012. "How Do the Unemployed Search for a Job? – Evidence from the EU Labour Force Survey," Ruhr Economic Papers 0312, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 0037, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  6. van der Klaauw, Bas & van Vuuren, Aico, 2010. "Job search and academic achievement," European Economic Review, Elsevier, vol. 54(2), pages 294-316, February.
  7. van den Berg, Gerard J. & van der Klaauw, Bas, 2013. "Structural Empirical Evaluation of Job Search Monitoring," IZA Discussion Papers 7740, Institute for the Study of Labor (IZA).
  8. Setty, Ofer, 2009. "Optimal Unemployment Insurance with Monitoring," MPRA Paper 18188, University Library of Munich, Germany.
  9. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
  10. Alexander Murray, 2010. "The State of Knowledge on the Role and Impact of Labour Market Information: A Survey of the International Evidence," CSLS Research Reports 2010-05, Centre for the Study of Living Standards.

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