The Displacement Effect of Reemployment Bonus Programs

Davidson, Carl; Woodbury, Stephen A.

doi:10.17848/wp90-02

Cited by 66 publications

(85 citation statements)

References 7 publications

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“…Davidson and Woodbury (1993) and Calmfors (1994) (unemployed in non pilot areas or ineligible unemployed in treated areas), they …nd that direct and equilibrium evaluations provide similar results. Using a job search and matching model with skilled and unskilled workers, Van der Linden (2005) shows that micro and equilibrium evaluations are likely to di¤er widely when job search e¤ort and wages are endogenous.…”

Section: Introductionmentioning

confidence: 87%

Labor market policy evaluation in equilibrium: Some lessons of the job search and matching model

Cahuc

Barbanchon

2010

Labour Economics

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Abstract:We analyze the consequences of counseling provided to job seekers in a standard job search and matching model. It turns out that neglecting equilibrium effects induced by counseling can lead to wrong conclusions. In particular, counseling can increase steady state unemployment although counseled job seekers exit unemployment at a higher rate than the noncounseled. Dynamic analysis shows that permanent and transitory policies can have effects of opposite sign on unemployment.

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Section: Introductionmentioning

confidence: 87%

Labor market policy evaluation in equilibrium: Some lessons of the job search and matching model

Cahuc

Barbanchon

2010

Labour Economics

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“…See Heckman (1979), Heckman and Robb (1986), Blundell, Duncan, and Meghir (1998), Bell, Blundell, and Van Reenen (1999) and Blundell and Costa Dias (2000) for precise descriptions of these conditions. Davidson and Woodbury (1993) is an example of an attempted calibration of substitution effects using data from the Illinois unemployment insurance (UI) experiments (see also Woodbury and Spiegelman 1987 on this program). have more sustainable effects than other labor market programs. 7 First, the program is mandatory: Refusal to participate results in sanctions.…”

Section: Introductionmentioning

confidence: 99%

Evaluating the Employment Impact of a Mandatory Job Search Program

Blundell¹,

Dias²,

Meghir³

2016

Labor Supply and Taxation

126

166

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This paper exploits area-based piloting and age-related eligibility rules to identify treatment effects of a labor market program-the New Deal for Young People in the U.K. A central focus is on substitution/displacement effects and on equilibrium wage effects. The program includes extensive job assistance and wage subsidies to employers. We find that the impact of the program significantly raised transitions to employment by about 5 percentage points. The impact is robust to a wide variety of nonexperimental estimators. However, we present some evidence that this effect may not be as large in the longer run. (JEL: J18, J23, J38)

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“…8. This corresponds to an annual discount factor of 0.82, the factor used for all figures and tables in Davidson and Woodbury (1993). 9.…”

Section: Calibration Of the Model Control Groupmentioning

confidence: 99%

Evaluating search and matching models using experimental data

2015

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This paper introduces an innovative test of search and matching models using the exogenous variation available in experimental data. We take an off-the-shelf search model and calibrate it to data on the control group from a randomized social experiment. We then simulate a program group from a randomized experiment within the model. As a measure of the performance of the model, we compare the outcomes of the program groups from the model and from the randomized experiment. We illustrate our methodology using the Canadian Self-Sufficiency Project (SSP), a social experiment providing a time-limited earnings supplement for Income Assistance recipients who obtain full-time employment within a 12-month period. We find two features of the model are consistent with the experimental results: endogenous search intensity and exogenous job destruction. We find mixed evidence in support of the assumption of fixed hours of labor supply. Finally, we find a constant job destruction rate is not consistent with the experimental data in this context. JEL Classification: J2; I38; J6

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The Displacement Effect of Reemployment Bonus Programs

Cited by 66 publications

References 7 publications

Labor market policy evaluation in equilibrium: Some lessons of the job search and matching model

Labor market policy evaluation in equilibrium: Some lessons of the job search and matching model

Evaluating the Employment Impact of a Mandatory Job Search Program

Evaluating search and matching models using experimental data

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