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Counseling the unemployed : does it lower unemployment duration and recurrence ?

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  • Bruno, CREPON
  • Muriel, DEJEMEPPE

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Marc, GURGAND

Abstract

This article evaluates the effects of intensive counseling schemes that are provided to about 20% of the unemployed since the 2001 French unemployment policy reform (PARE). Several of the schemes are dedicated at improving the quality of assignment of workers to jobs. As a result, it is necessary to assess their impact on unemployment recurrence as well as unemployment duration. Using duration models and a very rich data set, we can identify heterogeneous and time-dependent causal effects of the schemes. We find significant favorable effects on both outcomes, but the impact on unemployment recurrence is stronger than on unemployment duration. In particular, the program shifts the incidence of recurrence, one year after employment, from 33 to 26%. This illustrates that labor market policies evaluations that consider unemployment duration alone can be misleading.

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Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2005034.

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Length: 36
Date of creation: 01 Sep 2005
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Handle: RePEc:ctl:louvec:2005034

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