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Counseling and Monitoring of Unemployed Workers: Theory and Evidence from a Social Experiment

Author

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  • Gerard van den Berg

    (Free University of Amsterdam)

  • Bas van der Klaauw

    (Free University of Amsterdam)

Abstract

To stimulate the re-employment of unemployed workers, the Dutch local unemployment insurance agencies provide counseling and monitoring. We investigate the effect of this ``active labor market policy'' on the individual transition rate from unemployment to employment. We present a job search model with two search channels and endogenous search effort. This model provides theoretical background on the effects of providing counseling and monitoring. In the empirical analysis we use administrative data which are collected using a social experiment. Our reduced-form estimation results do not show a significant effect of counseling and monitoring on re-employment probabilities. According to our theoretical model this is caused by a shift from informal to formal job search mainly induced by the monitoring.

Suggested Citation

  • Gerard van den Berg & Bas van der Klaauw, 2000. "Counseling and Monitoring of Unemployed Workers: Theory and Evidence from a Social Experiment," Econometric Society World Congress 2000 Contributed Papers 0972, Econometric Society.
    • Handle: RePEc:ecm:wc2000:0972
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    Cited by:

    1. Peter Fredriksson & Bertil Holmlund, 2006. "Optimal unemployment insurance design: Time limits, monitoring, or workfare?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(5), pages 565-585, September.
    2. Gerard J. van den Berg & Annette H. Bergemann & Marco Caliendo, 2009. "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 606-616, 04-05.
    3. Robert Breunig & Deborah A. Cobb‐Clark & Yvonne Dunlop & Marion Terrill, 2003. "Assisting the Long‐Term Unemployed: Results from a Randomised Trial," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 84-102, March.
    4. Nicola Pavoni & G. L. Violante, 2007. "Optimal Welfare-to-Work Programs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(1), pages 283-318.
    5. Jan Boone & Peter Fredriksson & Bertil Holmlund & Jan C. van Ours, 2007. "Optimal Unemployment Insurance with Monitoring and Sanctions," Economic Journal, Royal Economic Society, vol. 117(518), pages 399-421, March.
    6. Michael White and Genevieve Knight, 2003. "Benchmarking the effectiveness of NDYP: A review of European and US literature on the microeconomic effects of labour market programmes for young people," PSI Research Discussion Series 10, Policy Studies Institute, UK.
    7. Aysit Tansel & H. Mehmet Taşçı, 2010. "Hazard Analysis of Unemployment Duration by Gender in a Developing Country: The Case of Turkey," LABOUR, CEIS, vol. 24(4), pages 501-530, December.
    8. Peter Fredriksson & Bertil Holmlund, 2006. "Improving Incentives in Unemployment Insurance: A Review of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 357-386, July.
    9. Solenne Tanguy, 2006. "Recherche d'emploi : entre assurance et incitation," Revue d'économie politique, Dalloz, vol. 116(1), pages 43-64.
    10. Hämäläinen, Kari & Uusitalo, Roope & Vuori, Jukka, 2008. "Varying biases in matching estimates: Evidence from two randomised job search training experiments," Labour Economics, Elsevier, vol. 15(4), pages 604-618, August.
    11. Hesselius, Patrik & Johansson, Per & Larsson, Laura, 2005. "Monitoring sickness insurance claimants: evidence from a social experiment," Working Paper Series 2005:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Trine Filges & Geir Smedslund & Anne‐Sofie Due Knudsen & Anne‐Marie Klint Jørgensen, 2015. "Active Labour Market Programme Participation for Unemployment Insurance Recipients: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 11(1), pages 1-342.
    13. Konle-Seidl, Regina, 2005. "Lessons learned: Internationale Evaluierungsergebnisse zu Wirkungen aktiver und aktivierender Arbeitsmarktpolitik," IAB-Forschungsbericht 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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