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The Employment and Displacement Effects of Job Counseling Over the Business Cycle: Evidence from the U.S. Unemployment Insurance System

Author

Listed:
  • Marios Michaelides

    (Actus Policy Research; University of Cyprus)

  • Peter Mueser

    (University of Missouri)

Abstract

We examine the effects of a job-counseling program targeting Unemployment Insurance (UI) recipients in Nevada during both the Great Recession and a period characterized by a strong economy. The program reduced UI duration and improved participant employment and earnings in both periods. Effects can be partially attributed to participant exits before receiving any services (moral hazard effects) and partly to exits after receiving services (service effects). Notably, moral hazard effects appear more important during a strong economy, while the value of services is more evident during a recession. We find no evidence that the positive effects of job counseling for participants can be attributed to negative spillover effects for nonparticipants.

Suggested Citation

  • Marios Michaelides & Peter Mueser, 2024. "The Employment and Displacement Effects of Job Counseling Over the Business Cycle: Evidence from the U.S. Unemployment Insurance System," Working Papers 2406, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:2406
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    More about this item

    Keywords

    Job counseling; reemployment assistance; active labor market policies; unemployment; Unemployment Insurance; policy evaluation.;
    All these keywords.

    JEL classification:

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

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