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Estimating Equilibrium Effects of Job Search Assistance

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

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

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 e 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: randomized experiment; policy-relevant treatment (search for similar items in EconPapers)
JEL-codes: C21 E24 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-ure
Date: 2012-11-08
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Citations: View citations in EconPapers (26) Track citations by RSS feed

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ftp://ftp.econ.au.dk/afn/wp/12/wp12_27.pdf (application/pdf)

Related works:
Journal Article: Estimating Equilibrium Effects of Job Search Assistance (2018) Downloads
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2017) Downloads
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2015) Downloads
Working Paper: Estimating equilibrium effects of job search assistance (2012) Downloads
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2012) Downloads
Working Paper: Estimating Equilibrium Effects of Job Search Assistance (2012) Downloads
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