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Information shocks and the empirical evaluation of training programs during unemployment spells

Author

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  • Bruno Crépon
  • Marc Ferracci
  • Gregory Jolivet
  • Gerard J. van den Berg

Abstract

We study the role of notifications in the evaluation of training programs for unemployed workers. Using a unique administrative data set containing the dates when information is exchanged between job seekers and caseworkers, we address three questions: Do information shocks, such as notification of future training, have an effect on unemployment duration? What is the joint effect of notification and training programs on unemployment? Can ignoring information shocks lead to a large bias in the estimation of the effect of training programs? We discuss these issues through the lens of a job search model and then conduct an empirical analysis following a “random effects” approach to deal with selectivity. We find that notification has a strong positive effect on the training probability but a negative one on the probability of leaving unemployment. This “attraction” effect highlights the importance of accounting for notifications in the evaluation of active labor market policies.

Suggested Citation

  • Bruno Crépon & Marc Ferracci & Gregory Jolivet & Gerard J. van den Berg, 2018. "Information shocks and the empirical evaluation of training programs during unemployment spells," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(4), pages 594-616, June.
    • Handle: RePEc:wly:japmet:v:33:y:2018:i:4:p:594-616
    DOI: 10.1002/jae.2621
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    Cited by:

    1. Bijwaard, Govert, 2021. "Educational Differences in Mortality and Hospitalisation for Cardiovascular Diseases for Males," IZA Discussion Papers 14507, Institute of Labor Economics (IZA).
    2. Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    3. van den Berg, Gerard J. & Hofmann, Barbara & Stephan, Gesine & Uhlendorff, Arne, 2021. "Mandatory integration agreements for unemployed job seekers: a randomized controlled field experiment in Germany," Working Paper Series 2021:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Lombardi, Stefano & van den Berg, Gerard J. & Vikström, Johan, 2020. "Empirical Monte Carlo evidence on estimation of Timing-of-Events models," Working Paper Series 2020:26, IFAU - Institute for Evaluation of Labour Market and Education Policy, revised 05 Jan 2021.
    5. Gerard J. van den Berg & Arne Uhlendorff & Joachim Wolff, 2022. "The Impact of Sanctions for Young Welfare Recipients on Transitions to Work and Wages, and on Dropping Out," Economica, London School of Economics and Political Science, vol. 89(353), pages 1-28, January.
    6. Jeremy McCauley, 2020. "The Role of Information in Explaining the Lack of Welfare-Induced Migration," Bristol Economics Discussion Papers 20/729, School of Economics, University of Bristol, UK.
    7. Bruno Decreuse & Guillaume Wilemme, 2019. "Age Discontinuity and Nonemployment Benefit Policy Evaluation through the Lens of Job Search Theory," AMSE Working Papers 1911, Aix-Marseille School of Economics, France.
    8. Altmann, Steffen & Glenny, Anita Marie & Mahlstedt, Robert & Sebald, Alexander, 2022. "The Direct and Indirect Effects of Online Job Search Advice," IZA Discussion Papers 15830, Institute of Labor Economics (IZA).
    9. Bijwaard, Govert E., 2022. "Educational differences in mortality and hospitalisation for cardiovascular diseases," Journal of Health Economics, Elsevier, vol. 81(C).
    10. Katrin Hohmeyer & Joachim Wolff, 2018. "Of carrots and sticks: the effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-23, December.
    11. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," Working Papers hal-03881625, HAL.
    12. Stephen Kastoryano & Bas van der Klaauw, 2022. "Dynamic evaluation of job search assistance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(2), pages 227-241, March.
    13. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," SciencePo Working papers Main hal-03881625, HAL.
    14. Bruno Decreuse & Guillaume Wilemme, 2019. "Age discontinuity and nonemployment benefit policy evaluation through the lens of job search theory," 2019 Meeting Papers 890, Society for Economic Dynamics.

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