Arbeitspapier

The Intended and Unintended Effects of Promoting Labor Market Mobility

Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility - as intended - causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 15011

Klassifikation
Wirtschaft
Geographic Labor Mobility; Immigrant Workers
Mobility, Unemployment, and Vacancies: Public Policy
Microeconomic Policy: Formulation, Implementation, and Evaluation
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Thema
job search
active labor market policy
labor market mobility
unintended consequence
search frictions

Ereignis
Geistige Schöpfung
(wer)
Caliendo, Marco
Künn, Steffen
Mahlstedt, Robert
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Caliendo, Marco
  • Künn, Steffen
  • Mahlstedt, Robert
  • Institute of Labor Economics (IZA)

Entstanden

  • 2022

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