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How to Help Unemployed Find Jobs Quickly; Experimental Evidence from a Mandatory Activation Program

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Listed author(s):
  • Krogh Graversen, Brian
  • van Ours, Jan C
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    Abstract

    This paper investigates how a mandatory activation program in Denmark affects the job finding rate of unemployed workers. The activation program was introduced in an experimental setting where about half of the workers who became unemployed in the period from November 2005 to March 2006 were randomly assigned to the program while the other half was not. It appears that the activation program is very effective. The median unemployment duration of the control group is 14 weeks, while it is 11.5 weeks for the treatment group. The analysis shows that the job finding rate in the treatment group is 30% higher than in the control group. This result is mainly driven by the more intensive contacts between the unemployed and the public employment service.

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    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6057.

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    Date of creation: Jan 2007
    Handle: RePEc:cpr:ceprdp:6057
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    Keywords: Experiment; Unemployment duration; Unemployment insurance;

    Find related papers by JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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