Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment

Bruno Crépon, Esther Duflo, Marc Gurgand, Roland Rathelot and Philippe Zamora

No 2012-28, Working Papers from Center for Research in Economics and Statistics

Abstract: This paper reports the results from a randomized experiment designed to evaluate the direct and indirect (displacement) impacts of job placement assistance on the labor market outcomes of young, educated job seekers in France. We use a two-step design. In the first step, the proportions of job seekers to be assigned to treatment (0%, 25%, 50%, 75% or 100%) were randomly drawn for each of the 235 labor markets (e.g. cities) participating in the experiment. Then, in each labor market, eligible job seekers were randomly assigned to the treatment, following this proportion. After eight months, eligible, unemployed youths who were assigned to the program were significantly more likely to have found a stable job than those who were not. But these gains are transitory, and they appear to have come partly at the expense of eligible workers who did not benefit from the program, particularly in labor markets where they compete mainly with other educated workers, and in weak labor markets. Overall, the program seems to have had very little net benefits.

Keywords: job placement; counseling; displacement effects; randomized experiment (search for similar items in EconPapers)
JEL-codes: C93 J64 J68 (search for similar items in EconPapers)
Pages: 56
Date: 2012-11
New Economics Papers: this item is included in nep-exp, nep-lab, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

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Related works:
Journal Article: Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment (2013)
Working Paper: Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment (2013)
Working Paper: Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment (2013)
Working Paper: Do Labor Market Policies Have Displacement Effects? Evidence from a Clustered Randomized Experiment (2012)
Working Paper: Do Labor Market Policies Have Displacement Effects? Evidence from a Clustered Randomized Experiment (2012)
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