Estimating equilibrium effects of job search assistance

Arbeitspapier

Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the nonparticipants in the experiment regions find jobs slower after the introduction of the activation program (relative to workers in other regions). We then estimate an equilibrium search model. This model shows that a large scale role out of the activation program decreases welfare, while a standard partial microeconometric cost-benefit analysis would conclude the opposite.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6748

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: randomized experiment ; policy-relevant treatment effects ; job search ; externalities ; indirect inference ; Arbeitsmarktpolitik ; Arbeitsuche ; Wirkungsanalyse ; Dänemark

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gautier, Pieter ; Muller, Paul ; van der Klaauw, Bas ; Rosholm, Michael ; Svarer, Michael
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/62485
• Last update: 10.03.2025, 11:42 AM CET