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Vacancy Referrals, Job Search, and the Duration of Unemployment: A Randomized Experiment

Author

Listed:
  • Engström, Per

    () (Uppsala University)

  • Hesselius, Patrik

    () (IFAU)

  • Holmlund, Bertil

    () (Uppsala University)

Abstract

One goal of the public employment service is to facilitate matching between unemployed job seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements. The referral of job seekers to vacancies is one instrument used for these purposes. We report results from a randomized Swedish experiment where the outcome of referrals is examined. To what extent do unemployed individuals actually apply for the jobs they are referred to? Does information to job seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment? The experiment indicates that a relatively large fraction (one third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people. However, we find no significant impact on the duration of unemployment.

Suggested Citation

  • Engström, Per & Hesselius, Patrik & Holmlund, Bertil, 2009. "Vacancy Referrals, Job Search, and the Duration of Unemployment: A Randomized Experiment," IZA Discussion Papers 3991, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3991
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    References listed on IDEAS

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    1. Peter Fredriksson & Bertil Holmlund, 2006. "Improving Incentives in Unemployment Insurance: A Review of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 357-386, July.
    2. Ashenfelter, Orley & Ashmore, David & Deschenes, Olivier, 2005. "Do unemployment insurance recipients actively seek work? Evidence from randomized trials in four U.S. States," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 53-75.
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    Cited by:

    1. repec:spr:izalpo:v:6:y:2017:i:1:d:10.1186_s40173-017-0094-0 is not listed on IDEAS
    2. van den Berg, Gerard J. & Hofmann, Barbara & Uhlendorff, Arne, 2016. "The Role of Sickness in the Evaluation of Job Search Assistance and Sanctions," IZA Discussion Papers 9626, Institute for the Study of Labor (IZA).
    3. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    4. Schmidl, Ricarda, 2015. "The Effectiveness of Early Vacancy Information in the Presence of Monitoring and ALMP," IZA Discussion Papers 9575, Institute for the Study of Labor (IZA).
    5. Bart COCKX & Corinna GHIRELLI & Bruno VAN DER LINDEN, 2013. "Monitoring Job Search Effort with Hyperbolic Time Preferences and Non-Compliance: A Welfare Analysis," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Jonas Maibom & Michael Rosholm & Michael Svarer, 2017. "Experimental Evidence on the Effects of Early Meetings and Activation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 541-570, July.
    7. Van Belle, Eva & Caers, Ralf & De Couck, Marijke & Di Stasio, Valentina & Baert, Stijn, 2018. "The Signal of Applying for a Job Under a Vacancy Referral Scheme," GLO Discussion Paper Series 173, Global Labor Organization (GLO).

    More about this item

    Keywords

    vacancy referral; job matching; job search; randomized experiment;

    JEL classification:

    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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