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Does Job-Search Assistance Affect Search Effort and Outcomes ? A Microeconometric Analysis of Public Versus Private Search Methods

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  • Denis Fougère

    (Crest)

  • Jacqueline Pradel

    (Crest)

  • Muriel Roger

    (Crest)

Abstract

In this paper, we examine the disincentive effects of the public employment serviceon the search effort of unemployed workers and on their exit rate from unemployment.For that purpose, we specify a structural search model with fixed and variablecosts of search in which unemployed workers select their optimal search intensitygiven the exogenous arrival rate of job offers coming from the public employmentagency. Because the theoretical effect of an increase in this exogenous job offer arrivalrate on the structural exit rate from unemployment is ambiguous, we estimatethis model using individual unemployment duration data. Our results show that theexit rate from unemployment increases with the arrival rate of job contacts obtainedby the public employment service, especially for low-educated and low-skilled workers.They also show that the search effort is more costly for low-educated womenand low-skilled adult unemployed workers. This last result suggests that a publicemployment agency that matches searchers and employers is beneficial, in the sensethat it saves searchers in terms of search costs they would otherwise bear.

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  • Denis Fougère & Jacqueline Pradel & Muriel Roger, 2005. "Does Job-Search Assistance Affect Search Effort and Outcomes ? A Microeconometric Analysis of Public Versus Private Search Methods," Working Papers 2005-33, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2005-33
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    Cited by:

    1. Fougère, Denis & Pradel, Jacqueline & Roger, Muriel, 2009. "Does the public employment service affect search effort and outcomes?," European Economic Review, Elsevier, vol. 53(7), pages 846-869, October.
    2. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 0037, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    3. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    4. Annette Bergemann & Gerard J. Van Den Berg, 2008. "Active Labor Market Policy Effects for Women in Europe - A Survey," Annals of Economics and Statistics, GENES, issue 91-92, pages 385-408.
    5. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute of Labor Economics (IZA).
    6. Ronald Bachmann & Daniel Baumgarten, 2013. "How do the unemployed search for a job? – Evidence from the EU Labour Force Survey," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-25, December.
    7. Gerard J. van den Berg & Bas van der Klaauw, 2019. "Structural Empirical Evaluation Of Job Search Monitoring," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 879-903, May.
    8. Sylvie Blasco, 2010. "Le non recours à un système d’assurance chômage avec politiques actives d’emploi," Économie et Prévision, Programme National Persée, vol. 192(1), pages 1-25.
    9. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 37, RWI - Leibniz-Institut für Wirtschaftsforschung.
    10. DUNCAN McVICAR, 2010. "Does Job Search Monitoring Intensity Affect Unemployment? Evidence from Northern Ireland," Economica, London School of Economics and Political Science, vol. 77(306), pages 296-313, April.
    11. Twisha Chatterjee, 2018. "A model of search and matching with PES intermediation," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 1-36, April.
    12. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute of Labor Economics (IZA).
    13. Setty, Ofer, 2009. "Optimal Unemployment Insurance with Monitoring," MPRA Paper 18188, University Library of Munich, Germany.
    14. Ruohan Wu & Yuexing Lan & Xueyu Cheng, 2018. "Empirically Examining the Individual-Level Determinants of Job Searching Outcomes: a Non-linear Analysis under the Case of Chile," Journal of Economics, Race, and Policy, Springer, vol. 1(1), pages 3-15, July.
    15. Blázquez, Maite & Herrarte, Ainhoa & Sáez, Felipe, 2019. "Training and job search assistance programmes in Spain: The case of long-term unemployed," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 316-335.
    16. Setty, Ofer, 2010. "Optimal unemployment insurance with monitoring," Foerder Institute for Economic Research Working Papers 275747, Tel-Aviv University > Foerder Institute for Economic Research.
    17. Thomas Brodaty & Bruno Crépon & Denis Fougère, 2007. "Les méthodes micro-économétriques d'évaluation et leurs applications aux politiques actives de l'emploi," Economie & Prévision, La Documentation Française, vol. 0(1), pages 93-118.
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    20. Opoku Nyarko, Christopher & Baah-Boateng, William & Nketiah-Amponsah, Edward, 2014. "The Effect of Search Effort on the transition from Unemployment to Work: Evidence from a Cross Section of Ghanaian Formal Sector Workers," MPRA Paper 109691, University Library of Munich, Germany.
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    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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