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Job Search Requirements, Effort Provision and Labor Market Outcomes

Patrick Arni () and Amelie Schiprowski
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Patrick Arni: University of Bristol

No 11765, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: How effective are effort targets? This paper provides novel evidence on the effects of job search requirements on effort provision and labor market outcomes. Based on large-scale register data, we estimate the returns to required job search effort, instrumenting individual requirements with caseworker stringency. Identification is ensured by the conditional random assignment of job seekers to caseworkers. We find that the duration of un- and non- employment both decrease by 3% if the requirement increases by one monthly application. When instrumenting actual applications with caseworker stringency, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find that the effect of required effort decreases in the individual's voluntary effort. Finally, the requirement level causes small negative effects on job stability, reducing the duration of re- employment spells by 0.3% per required application. We find a zero effect on re-employment wages.

Keywords: job search behavior; effort targets; unemployment insurance; incentives (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2018-08
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Published in: Journal of Public Economics, 2019, 169, 65-88

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Journal Article: Job search requirements, effort provision and labor market outcomes (2019) Downloads
Working Paper: Job Search Requirements, Effort Provision and Labor Market Outcomes (2018) Downloads
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