IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Policy Evaluation in Equilibrium The Case of Job Searcg Counseling in France

Listed author(s):
  • Pierre Cahuc


  • Bruno Crépon


  • Julien Guitard


  • Marc Gurgand


We develop a partial equilibrium stochastic job matching model of the labor market to examine whetherthe counseling of unemployment workers displaces unemployed workers not offered the counseling. Inthis model, the improvement of the reservation utility of counseled job seekers induces them to refusejob offers that they would have accepted if they were not counseled. This behavior, which exerts anegative spillover on job creation, reduces the arrival rate of job offers to the unemployed workers whodo not benefit from counseling. The model is estimated on data concerning intensive counselingschemes that are provided to about 12.5 percent of the unemployed workers since the 2001 Frenchunemployment policy reform (PARE). We find significant favourable effects of counselling on the exitrate out of unemployment of counseled workers. We also find that counselling reduces the exit ratefrom unemployment of workers not offered the counseling. This effect is sufficiently large to imply thatcounseling reduces the average exit rate from unemployment of counseled and non counseled workerswhen a small share of unemployed workers are counseled. This result puts to the fore that evaluationsrelying only on comparisons of differences in outcomes between a treatment group and a control groupcan lead to misleading conclusions even when a small share of the population is treated.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: Crest working paper version
Download Restriction: no

Paper provided by Center for Research in Economics and Statistics in its series Working Papers with number 2008-13.

in new window

Length: 36
Date of creation: 2008
Handle: RePEc:crs:wpaper:2008-13
Contact details of provider: Postal:
Bâtiment ENSAE, 5 rue Henry LE Chatelier, 91120 Palaiseau

Phone: 01 41 17 60 81
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2008-13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sri Srikandan)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.