 The consequences of job search monitoring for the long-term unemployed: Disability instead of employment?Octave De Brouwer, Elisabeth Leduc and Ilan Tojerow Journal of Public Economics, 2023, vol. 224, issue C Abstract: We study the effect of job search monitoring (JSM) on individual labor market outcomes of the long-term unemployed. Exploiting the implementation of a JSM program targeted at jobseekers under the age of 49, we set up a regression discontinuity design that credibly identifies the program’s causal effect on unemployment, employment, and disability insurance (DI) participation and participation in other social welfare programs within a three-year period. We find that JSM increases exits from unemployment to DI without affecting transitions into employment or other social welfare programs. We further find that the effect of JSM on DI materializes before any sanction can be imposed and monitored individuals are still 10 percentage points more likely to be on DI three years after the start of monitoring. Ultimately, exploring fiscal implications reveals that the decrease in unemployment transfers as a result of JSM is entirely offset by the increase in DI transfers. Keywords: Disability; Unemployment; Job search monitoring; Active labor market programs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:224:y:2023:i:c:s0047272723001111 DOI: 10.1016/j.jpubeco.2023.104929 Access Statistics for this article Journal of Public Economics is currently edited by R. Boadway and J. Poterba More articles in Journal of Public Economics from Elsevier |
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