Mandatory Integration Agreements for Unemployed Job Seekers: A Randomized Controlled Field Experiment in Germany

Gerard J. van den Berg (), Barbara Hofmann, Gesine Stephan () and Arne Uhlendorff
Additional contact information
Gerard J. van den Berg: University of Groningen
Barbara Hofmann: FEA Nuremberg
Gesine Stephan: Institute for Employment Research (IAB), Nuremberg

No 14026, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In the German unemployment insurance system, Integration Agreements (IA) are mandatory contracts between the employment agency and the unemployed, jointly signed by the latter and the caseworker. IAs stipulate rights and obligations but are generally perceived as instruments to control search behavior. We designed and implemented a Randomized Controlled Trial involving thousands of newly unemployed workers, where we randomize the timing of the IA as well as the extent to which this timing is announced prior to the meeting. Randomization is at the individual level. We use administrative registers to observe outcomes. A theoretical analysis of anticipation of prior announcements provides suggestions to empirically detect this. The results show that IAs early in the spell have on average a small positive effect on entering employment within a year. When classifying individuals using an employability indicator, we find that this result is driven by individuals with adverse prospects. Among them, being assigned to an early IA increases the probability of re-employment within a year from 45% to 53%.

Keywords: active labor market policy; job search; monitoring; unemployment; nudge; anticipation; randomized controlled trial (search for similar items in EconPapers)
JEL-codes: C93 J64 J68 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2021-01
New Economics Papers: this item is included in nep-eur, nep-exp, nep-lab and nep-law
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Published - published online in: International Economic Review , 15 November 2024

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Related works:
Journal Article: MANDATORY INTEGRATION AGREEMENTS FOR UNEMPLOYED JOB SEEKERS: A RANDOMIZED CONTROLLED FIELD EXPERIMENT IN GERMANY (2025)
Working Paper: MANDATORY INTEGRATION AGREEMENTS FOR UNEMPLOYED JOB SEEKERS: A RANDOMIZED CONTROLLED FIELD EXPERIMENT IN GERMANY (2024)
Working Paper: Mandatory integration agreements for unemployed job seekers: a randomized controlled field experiment in Germany (2021)
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