Vacancy Referrals, Job Search, and the Duration of Unemployment: A Randomized Experiment

28 Pages Posted: 2 Mar 2009

See all articles by Per Engström

Per Engström

Uppsala University - Department of Economics

Patrik Hesselius

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University

Bertil Holmlund

Uppsala University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

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Abstract

One goal of the public employment service is to facilitate matching between unemployed job seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements. The referral of job seekers to vacancies is one instrument used for these purposes. We report results from a randomized Swedish experiment where the outcome of referrals is examined. To what extent do unemployed individuals actually apply for the jobs they are referred to? Does information to job seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment? The experiment indicates that a relatively large fraction (one third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people. However, we find no significant impact on the duration of unemployment.

Keywords: vacancy referral, job matching, job search, randomized experiment

JEL Classification: C99, J64, J68

Suggested Citation

Engström, Per and Hesselius, Patrik and Holmlund, Bertil, Vacancy Referrals, Job Search, and the Duration of Unemployment: A Randomized Experiment. IZA Discussion Paper No. 3991. Available at SSRN: https://ssrn.com/abstract=1351155

Per Engström (Contact Author)

Uppsala University - Department of Economics ( email )

Box 513
SE-75120 Uppsala
Sweden
+46 - 18 - 471 15 65 (Phone)
+46 - 18 - 471 14 78 (Fax)

HOME PAGE: http://www.nek.uu.se/cgi/staffpage.pl?PId=13,lang=eng

Patrik Hesselius

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

Uppsala University

Box 513
Uppsala, 751 20
Sweden

Bertil Holmlund

Uppsala University - Department of Economics ( email )

SE-75120 Uppsala
Sweden
+46 18 471 1122 (Phone)
+46 18 471 1478 (Fax)

HOME PAGE: http://www.nek.uu.se/faculty/holmlund/index.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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