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

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Author Info
Bruno, CREPON
Muriel, DEJEMEPPE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)
Marc, GURGAND

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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 Université catholique de Louvain, Département des Sciences Economiques Working Paper with number 2005034.

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Length: 36
Date of creation: 06 Sep 2005
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Handle: RePEc:ctl:louvec:2005034

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  1. Annette Bergemann & Gerard J. van den Berg, 2006. "Active Labor Market Policy Effects for Women in Europe: A Survey," IZA Discussion Papers 2365, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Alan Manning, 2005. "You Cant Always Get What You Want: the Impact of the Jobseekers Allowance," CEP Discussion Papers dp0697, Centre for Economic Performance, LSE. [Downloadable!]
  3. Núria Rodríguez-Planas, 2007. "What Works Best For Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programs? Evidence from Romania," UFAE and IAE Working Papers 712.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
    Other versions:
  4. Bruno, VAN DER LINDEN, 2005. "Equilibrium Evaluation of Active Labor Market Programmes Enhancing Matching Effectiveness," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2005007, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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