Estimating Equilibrium Effects of Job Search Assistance

Abstract

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Experimental Evidence on the Effects of Early Meetings and Activation

“…Gautier et al . () present a CBA of another Danish experiment with early activation. They use a search‐matching model to assess the effects of welfare and labour market performance, and they find that the partial equilibrium effects can change substantially when general equilibrium effects are taken into account.…”

Job search monitoring and assistance for the unemployed

“…In this tight Danish labor market, there is evidence that firms reacted to increased job search by creating more vacancies, which alleviated the impact of additional job search by program participants on the competition for jobs. Using a model in tandem with the empirical results for Denmark, the authors show that reinforced job search assistance decreases social welfare if it is provided to more than 20% of the unemployed benefit recipients IOANA E. MARINESCU | Job search monitoring and assistance for the unemployed [13]. This finding confirms that reinforced job search assistance and monitoring does not necessarily improve welfare overall, both because it can lead to worse job matches (e.g.…”

“…Displacement effects for job search assistance programs directed at unemployment benefit recipients have also been found in Denmark using an RCT [13]. The unemployment rate in Denmark at the time (2005-2006) was very low (4.2%), which suggests that the displacement effects should not be too large given that competition for jobs should be low.…”

“…On the other hand, the findings from two other studies suggest that the positive effects of job search assistance and monitoring could be largely due to displacement, i.e. increasing the job finding of program participants at the expense of non-participants [12], [13]. More research is needed to systematically explore the size of displacement effects under different economic conditions.…”

Impact of public expenditure in labour market policies and other selected factors on youth unemployment

“…Negative effects were estimated in several cases (e.g., Gautier, Muller, Van Der Klaauw, Rosholm, & Svarer, 2012 concluded that, despite the decline in unemployment rates due to some active employment measures, increased government spending and congestion on the labour market can reduce welfare). An additional problem is that the impact of A.L.M.P.s on unemployment can be biased as some participants in these measures are not included in the unemployed figures (Scarpetta, 1996).…”