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Are Reemployment Services Effective? Experimental Evidence from the Great Recession

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  • Marios Michaelides
  • Peter Mueser

Abstract

We report the results of a random assignment study of a reemployment program implemented in the United States during the Great Recession which required Unemployment Insurance (UI) recipients to undergo an eligibility review and receive comprehensive job-counseling services. The program expedited participant exit from UI, produced substantial UI savings, and improved participant employment rates and earnings. These effects are associated with: (1) increased participant UI exit up to the time of services receipt, indicating an effect due to participant efforts to avoid program activities or failure to meet UI eligibility requirements; and (2) greater exit subsequent to services receipt, implying that the services themselves helped participants conduct an effective job search. Our findings provide compelling evidence that reemployment programs can be effective during recessions.

Suggested Citation

  • Marios Michaelides & Peter Mueser, 2015. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," University of Cyprus Working Papers in Economics 06-2015, University of Cyprus Department of Economics.
  • Handle: RePEc:ucy:cypeua:06-2015
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    Cited by:

    1. Peter Mueser & Marios Michaelides, 2017. "The Labor Market Effects of U.S. Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Working Papers 18-05, Department of Economics, University of Missouri.
    2. Dayanand S. Manoli & Marios Michaelides & Ankur Patel, 2018. "Long-Term Effects of Job-Search Assistance: Experimental Evidence Using Administrative Tax Data," NBER Working Papers 24422, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Great Recession; job search services; unemployment; unemployment insurance; program evaluation;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H4 - Public Economics - - Publicly Provided Goods

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