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The Employment and Displacement Effects of Job Counseling Over the Business Cycle: Evidence from the U.S. Unemployment Insurance System

Marios Michaelides () and Peter Mueser
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Marios Michaelides: Actus Policy Research; University of Cyprus

No 2406, Working Papers from Department of Economics, University of Missouri

Abstract: We examine the effects of a job-counseling program targeting Unemployment Insurance (UI) recipients in Nevada during both the Great Recession and a period characterized by a strong economy. The program reduced UI duration and improved participant employment and earnings in both periods. Effects can be partially attributed to participant exits before receiving any services (moral hazard effects) and partly to exits after receiving services (service effects). Notably, moral hazard effects appear more important during a strong economy, while the value of services is more evident during a recession. We find no evidence that the positive effects of job counseling for participants can be attributed to negative spillover effects for nonparticipants.

Keywords: Job counseling; reemployment assistance; active labor market policies; unemployment; Unemployment Insurance; policy evaluation. (search for similar items in EconPapers)
JEL-codes: H4 J6 (search for similar items in EconPapers)
Pages: 47 pgs.
Date: 2024-06
New Economics Papers: this item is included in nep-lab and nep-mac
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