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Why do tougher caseworkers increase employment? The role of programme assignment as a causal mechanism

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  • Huber, Martin
  • Mellace, Giovanni
  • Lechner, Michael

Abstract

Previous research found that less accommodating caseworkers are more successful in placing unemployed workers into employment. This paper tries to shed more light on the causal mechanisms behind this result using semiparametric mediation analysis. Analysing very informative linked jobseeker-caseworker data for Switzerland, we find that the positive employment effects of less accommodating caseworkers are not driven by a particularly ef-fective mix of labour market programmes they use, but rather by other dimensions of the counselling process, possibly including threat effects of sanctions, pressure to accept jobs, and other factors related to the caseworker’s counselling style.

Suggested Citation

  • Huber, Martin & Mellace, Giovanni & Lechner, Michael, 2014. "Why do tougher caseworkers increase employment? The role of programme assignment as a causal mechanism," Economics Working Paper Series 1414, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2014:14
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Unemployment; counselling style; active labour market policy; direct effects; indirect effects; causal mechanisms; causal channels; matching estimation;
    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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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