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

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Author Info

  • van den Berg, Gerard J.

    ()
    (University of Mannheim)

  • van der Klaauw, Bas

    ()
    (VU University Amsterdam)

Abstract

We investigate the effect of counseling and monitoring on the individual transition rate to employment. We theoretically analyze these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data concerning a social experiment with full randomization and compliance. The results show that counseling and monitoring do not affect the exit rate to work. Monitoring causes a shift from informal to formal job search. We combine our empirical results to the results from our theoretical analysis and the existing empirical literature, to establish a comprehensive analysis of the effectiveness of these policies.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 374.

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Length: 57 pages
Date of creation: Oct 2001
Date of revision:
Publication status: published in: International Economic Review, 2006, 47 (3), 895-936
Handle: RePEc:iza:izadps:dp374

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Related research

Keywords: randomized social experiment; multi-tasking; Unemployment duration; search effort; active labor market policy; treatment; search channels;

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