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COUNSELING AND MONITORING OF UNEMPLOYED WORKERS: THEORY AND EVIDENCE FROM A CONTROLLED SOCIAL EXPERIMENT *
Author(s) -
Van Den Berg Gerard J.,
Van Der Klaauw Bas
Publication year - 2006
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2006.00399.x
Subject(s) - empirical evidence , affect (linguistics) , search theory , work (physics) , economics , unemployment , empirical research , psychology , microeconomics , macroeconomics , mechanical engineering , philosophy , communication , epistemology , engineering
We investigate the effect of counseling and monitoring on the individual transition rate to employment. We theoretically analyze these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data concerning a social experiment with full randomization and compliance. The results do not provide evidence that counseling and monitoring affect the exit rate to work. Monitoring causes a shift from informal to formal job search. We combine our empirical results with the results from our theoretical analysis and the existing empirical literature, to establish a comprehensive analysis of the effectiveness of these policies.