Estimating Equilibrium Effects of Job Search Assistance

Pieter Gautier, Paul Muller, Bas van der Klaauw, Michael Rosholm and Michael Svarer

No 6748, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the nonparticipants in the experiment regions find jobs slower after the introduction of the activation program (relative to workers in other regions). We then estimate an equilibrium search model. This model shows that a large scale role out of the activation program decreases welfare, while a standard partial microeconometric cost-benefit analysis would conclude the opposite.

Keywords: job search; policy-relevant treatment effects; randomized experiment; externalities; indirect inference (search for similar items in EconPapers)
JEL-codes: C21 E24 J64 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2012-07
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Published - published in: Journal of Labor Economics, 2018, 36 (4), 1073-1125

Downloads: (external link)
https://docs.iza.org/dp6748.pdf (application/pdf)

Related works:
Journal Article: Estimating Equilibrium Effects of Job Search Assistance (2018)
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2017)
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2015)
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2012)
Working Paper: Estimating equilibrium effects of job search assistance (2012)
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp6748

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().