How a Mandatory Activation Program Reduces Unemployment Durations; the Effects of Distance

Jan C. van Ours and Brian Krogh Graversen

No 7233, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In an experimental setting some Danish unemployed workers were assigned to an activation program while others were not. Unemployed who were assigned to the activation program found a job more quickly. We show that the activation effect increases with the distance between the place of residence of the unemployed worker and the place where the activation took place. We also find that the quality of the post-unemployment jobs was not affected by the activation program. Both findings confirm that activation programs mainly work because they are compulsory and unemployed don't like them.

Keywords: Activation program; Experiment; Unemployment duration; Unemployment insurance (search for similar items in EconPapers)
JEL-codes: C41 H55 J64 J65 (search for similar items in EconPapers)
Date: 2009-03
New Economics Papers: this item is included in nep-exp, nep-ias and nep-lab
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