Does Job Search Assistance Really Raise Employment?

45 Pages Posted: 17 Sep 2018 Last revised: 29 Oct 2018

See all articles by Rafael Lalive

Rafael Lalive

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

Yves Flückiger

affiliation not provided to SSRN

Pierre Kempeneers

University of Geneva

Multiple version iconThere are 2 versions of this paper

Date Written: August 2018

Abstract

We study how job search assistance (JSA) affects employment in a randomized pilot study with long run administrative data. JSA increases employment in the first year after assignment. In the second year, when most job seekers have left JSA, the employment gains evaporate, and even turn into losses in the third year. This sinusoidal pattern is consistent with job finding and employment loss transitions. Job seekers assigned to JSA find employment faster but, once employed, also lose employment faster, especially once eligible for new unemployment benefits. Job seekers assigned to JSA have similar types of contracts and re-employment earnings, but somewhat worse positions in the firm and are more likely to have a part time job.

Keywords: active labor-market policy, job loss, job placement, job search assistance, long term unemployment

JEL Classification: J64, J68

Suggested Citation

Lalive, Rafael and Flückiger, Yves and Kempeneers, Pierre, Does Job Search Assistance Really Raise Employment? (August 2018). CEPR Discussion Paper No. DP13133, Available at SSRN: https://ssrn.com/abstract=3244505

Rafael Lalive (Contact Author)

University of Lausanne - Department of Economics ( email )

Batiment Internef
Lausanne, 1015
Switzerland

IZA Institute of Labor Economics

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

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Yves Flückiger

affiliation not provided to SSRN

Pierre Kempeneers

University of Geneva

102 Bd Carl-Vogt
Genève, CH - 1205
Switzerland

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