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Estimating Equilibrium Effects of Job Search Assistance

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  • Pieter Gautier

    (VU University Amsterdam)

  • Paul Muller

    (VU University Amsterdam)

  • Bas van der Klaauw

    (VU University Amsterdam, and CEPR)

  • Michael Rosholm

    (Aarhus University)

  • Michael Svarer

    (Aarhus University)

Abstract

Randomized experiments provide policy relevant treatment effects if there areno spillovers between participants and nonparticipants. We show that thisassumption is violated for a Danish activation program for unemployed workers.Using a difference-in-difference model we show that the nonparticipantsin the experiment regions find jobs slower after the introduction of the activationprogram (relative to workers in other regions). We then estimate anequilibrium search model. This model shows that a large scale role out of theactivation program decreases welfare, while a standard partial microeconometriccost-benefit analysis would conclude the opposite.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-071/3.

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Date of creation: 18 Jul 2012
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Handle: RePEc:dgr:uvatin:20120071

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Web page: http://www.tinbergen.nl

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Keywords: randomized experiment; policy-relevant treatment effects; job search;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How randomized experiments can go very wrong
    by Economic Logician in Economic Logic on 2012-12-19 15:05:00
  2. [??]??????????????????
    by himaginary in himaginaryの日記 on 2013-01-11 08:00:00
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Cited by:
  1. Fuhito Kojima & Parag Pathak & Alvin Roth, 2013. "Matching with Couples: Stability and Incentives in Large Markets," Discussion Papers 12-018, Stanford Institute for Economic Policy Research.
  2. van der Klaauw, Bas, 2014. "From Micro Data to Causality: Forty Years of Empirical Labor Economics," IZA Discussion Papers 8047, Institute for the Study of Labor (IZA).
  3. Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2013. "The effectiveness of active labor market policies: Evidence from a social experiment using non-parametric bounds," Labour Economics, Elsevier, vol. 24(C), pages 58-67.
  4. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
  5. Boockmann, Bernhard & Osiander, Christopher & Stops, Michael & Verbeek, Hans, 2013. "Effekte von Vermittlerhandeln und Vermittlerstrategien im SGB II und SGB III (Pilotstudie) : Abschlussbericht an das IAB durch das Institut für Angewandte Wirtschaftsforschung e. V. (IAW), Tübingen," IAB-Forschungsbericht 201307, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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