How a Mandatory Activation Program Reduces Unemployment Durations: The Effects of Distance

36 Pages Posted: 30 Mar 2009

See all articles by Brian Krogh Graversen

Brian Krogh Graversen

Danish Economic Councils

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

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Abstract

In an experimental setting some Danish unemployed workers were assigned to an activation program while others were not. Unemployed who were assigned to the activation program found a job more quickly. We show that the activation effect increases with the distance between the place of residence of the unemployed worker and the place where the activation took place. We also find that the quality of the post-unemployment jobs was not affected by the activation program. Both findings confirm that activation programs mainly work because they are compulsory and unemployed don't like them.

Keywords: unemployment insurance, unemployment duration, experiment, activation programs

JEL Classification: C41, H55, J64, J65

Suggested Citation

Graversen, Brian Krogh and van Ours, Jan C., How a Mandatory Activation Program Reduces Unemployment Durations: The Effects of Distance. IZA Discussion Paper No. 4079. Available at SSRN: https://ssrn.com/abstract=1369825

Brian Krogh Graversen (Contact Author)

Danish Economic Councils ( email )

Amaliegade 44
DK-1256 Copenhagen K
Denmark
+45 33445822 (Phone)
+45 33329029 (Fax)

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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