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More caseworkers shorten unemployment durations and save costs

Author

Listed:
  • René Böheim
  • Rainer Eppel

    (WIFO)

  • Helmut Mahringer

    (WIFO)

Abstract

In a randomized controlled trial in Austria, lower caseloads in public employment offices led to more meetings of the unemployed with their caseworkers, more job offers, more program assignments, and more sanctions for noncompliance with job search requirements. More intensive counseling led to shorter unemployment episodes due to faster job entry, but also to more exits from the labor force in the two years following treatment. We find effects for different subgroups of unemployed. We find no effects on wages. A cost-benefit analysis suggests that lower caseloads not only shorten the duration of unemployment but are also cost-effective.

Suggested Citation

  • René Böheim & Rainer Eppel & Helmut Mahringer, 2022. "More caseworkers shorten unemployment durations and save costs," Economics working papers 2022-08, Department of Economics, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:econwp:2022-08
    Note: English
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    File URL: http://www.econ.jku.at/papers/2022/wp2208.pdf
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    References listed on IDEAS

    as
    1. Luc Behaghel & Bruno Cr?pon & Marc Gurgand, 2014. "Private and Public Provision of Counseling to Job Seekers: Evidence from a Large Controlled Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 142-174, October.
    2. Pierre Koning, 2009. "The effectiveness of Public Employment Service workers in the Netherlands," Empirical Economics, Springer, vol. 37(2), pages 393-409, October.
    3. repec:hal:pseose:halshs-01067926 is not listed on IDEAS
    4. Rainer Eppel & Ulrike Huemer & Helmut Mahringer & Andrea Weber & Jochen Knöller & Regina Konle-Seidl, 2012. "Öffentliche Arbeitsvermittlungssysteme und ihr Einfluss auf Suchverhalten und Erfolg der Arbeitssuche," WIFO Studies, WIFO, number 45198, March.
    5. Jens Hainmueller & Barbara Hofmann & Gerhard Krug-super-† & Katja Wolf, 2016. "Do Lower Caseloads Improve the Performance of Public Employment Services? New Evidence from German Employment Offices," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 941-974, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Active labor market policy; Public Employment Services; caseworkers; counseling; job placement; field experiment;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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