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Counseling and Monitoring of Unemployed Workers: Theory and Evidence from a Social Experiment

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  • Gerard van den Berg

    (Free University of Amsterdam)

  • Bas van der Klaauw

    (Free University of Amsterdam)

Abstract

To stimulate the re-employment of unemployed workers, the Dutch local unemployment insurance agencies provide counseling and monitoring. We investigate the effect of this ``active labor market policy'' on the individual transition rate from unemployment to employment. We present a job search model with two search channels and endogenous search effort. This model provides theoretical background on the effects of providing counseling and monitoring. In the empirical analysis we use administrative data which are collected using a social experiment. Our reduced-form estimation results do not show a significant effect of counseling and monitoring on re-employment probabilities. According to our theoretical model this is caused by a shift from informal to formal job search mainly induced by the monitoring.

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 0972.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:0972

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Cited by:
  1. Jaap H. Abbring & Gerard J. van den Berg, 2005. "Social Experiments and Instrumental Variables with Duration Outcomes," Tinbergen Institute Discussion Papers 05-047/3, Tinbergen Institute.
  2. Solenne Tanguy, 2004. "Recherche d'emploi : entre assurance et incitation," Cahiers de la Maison des Sciences Economiques v04034, Université Panthéon-Sorbonne (Paris 1).
  3. Peter Fredriksson & Bertil Holmlund, 2003. "Improving Incentives in Unemployment Insurance: A Review of Recent Research," CESifo Working Paper Series 922, CESifo Group Munich.
  4. Pavoni, Nicola & Violante, Giovanni L, 2006. "Optimal Welfare-to-Work Programs," CEPR Discussion Papers 5937, C.E.P.R. Discussion Papers.
  5. Robert Breunig & Deborah A. Cobb-Clark & Yvonne Dunlop & Marion Terrill, 2003. "Assisting the Long-Term Unemployed: Results from a Randomised Trial," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 84-102, 03.
  6. Peter Fredriksson & Bertil Holmlund, 2003. "Optimal Unemployment Insurance Design: Time Limits, Monitoring, or Workfare?," CESifo Working Paper Series 1019, CESifo Group Munich.
  7. van den Berg, Gerard J. & Bergemann, Annette & Caliendo, Marco, 2008. "The effect of active labor market programs on not-yet treated unemployed individuals," Working Paper Series 2008:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  8. Kari Hämäläinen & Roope Uusitalo & Jukka Vuori, 2008. "Varying Biases in the Matching Estimates: Evidence from Two Randomized Job Search Training Experiments," Discussion Papers 438, Government Institute for Economic Research Finland (VATT).
  9. Hesselius, Patrik & Johansson, Per & Larsson, Laura, 2005. "Monitoring sickness insurance claimants: evidence from a social experiment," Working Paper Series 2005:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. Konle-Seidl, Regina, 2005. "Lessons learned: Internationale Evaluierungsergebnisse zu Wirkungen aktiver und aktivierender Arbeitsmarktpolitik," IAB-Forschungsbericht 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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