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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. () (Free University Amsterdam, Tinbergen Institute, IFAU-Uppsala, CEPR and IZA, Bonn)
van der Klaauw, Bas (Free University Amsterdam)

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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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Publisher 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: 56 pages
Date of creation: Oct 2001
Date of revision:
Handle: RePEc:iza:izadps:dp374

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

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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