COUNSELING AND MONITORING OF UNEMPLOYED WORKERS: THEORY AND EVIDENCE FROM A CONTROLLED SOCIAL EXPERIMENT

Gerard van den Berg and Bas van der Klaauw

International Economic Review, 2006, vol. 47, issue 3, 895-936

Abstract: We investigate the effect of counseling and monitoring on the individual transition rate to employment. We theoretically analyze these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data concerning a social experiment with full randomization and compliance. The results do not provide evidence that counseling and monitoring affect the exit rate to work. Monitoring causes a shift from informal to formal job search. We combine our empirical results with the results from our theoretical analysis and the existing empirical literature, to establish a comprehensive analysis of the effectiveness of these policies. Copyright 2006 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

Date: 2006
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Related works:
Working Paper: Counselling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment (2001)
Working Paper: Counseling and monitoring of unemployed workers: theory and evidence from a controlled social experiment (2001)
Working Paper: Counseling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment (2001)
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