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Are Reemployment Services Effective? Experimental Evidence from the Great Recession

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  • Marios Michaelides
  • Peter Mueser

Abstract

We examine an experimental†design reemployment program implemented in Nevada during the Great Recession that required Unemployment Insurance (UI) recipients to: (1) undergo an eligibility review to confirm they were qualified for benefits and actively searching for work and, if deemed eligible, (2) receive job†counseling services. Our results show that the program expedited participant exit from UI, produced UI savings that exceeded program costs, and improved participant employment outcomes. Analyses of program effects on the UI exit likelihood show that the program's effects are partly associated with increased participant exit up through the time when program activities were scheduled, reflecting voluntary exit of participants from UI to avoid program activities and disqualifications of participants who failed to meet eligibility requirements. In addition, the program induced substantial participant exit from UI in the period after participants fulfilled requirements and their interactions with the program had ended, suggesting that the job†counseling services offered by the program may have helped participants to conduct more effective job searches. Our findings provide evidence that reemployment programs that combine an eligibility review with mandatory participation in job†search services can be effective during recessions.

Suggested Citation

  • Marios Michaelides & Peter Mueser, 2018. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(3), pages 546-570, June.
  • Handle: RePEc:wly:jpamgt:v:37:y:2018:i:3:p:546-570
    DOI: 10.1002/pam.22063
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    Cited by:

    1. Marios Michaelides & Peter R. Mueser & Jeffrey A. Smith, 2021. "Do Reemployment Programs For The Unemployed Work For Youth? Evidence From The Great Recession In The United States," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 162-185, January.
    2. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    3. Dayanand S. Manoli & Marios Michaelides & Ankur Patel, 2018. "Long-Term and Heterogeneous Effects of Job-Search Assistance," NBER Working Papers 24422, National Bureau of Economic Research, Inc.
    4. Laporšek Suzana & Vodopivec Milan & Vodopivec Matija, 2022. "Activation programs for unemployment benefit recipients in Slovenia," Review of Economic Perspectives, Sciendo, vol. 22(2), pages 75-95, June.
    5. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.

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    More about this item

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H4 - Public Economics - - Publicly Provided Goods

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