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Estimating Equilibrium Effects of Job Search Assistance

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

No 6748, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 we 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 effects; job search; externalities; indirect inference (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-lab
Date: 2012-07
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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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