Do Reemployment Programs for the Unemployed Work for Youth? Evidence from the Great Recession in the United States

71 Pages Posted: 9 Jun 2020

See all articles by Marios Michaelides

Marios Michaelides

University of Cyprus

Peter Mueser

University of Missouri at Columbia

Jeffrey A. Smith

University of Wisconsin - Madison; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Abstract

We present experimental evidence on the effects of four U.S. reemployment programs for youth Unemployment Insurance (UI) recipients during the Great Recession. The three programs that emphasized monitoring and service referrals reduced UI receipt but had minimal effects on employment and earnings; these programs mainly induced the early exit of participants. The fourth program, which combined mandatory job counseling with monitoring, caused the largest reductions in UI receipt and clearly increased employment and earnings. Both early participant exits and effective job counseling underlie these impacts. We conclude that policymakers should require job counseling for youth UI recipients during recessions.

Keywords: youth, Great Recession, REA, WPRS, job counseling, active labor market policies, unemployment, Unemployment Insurance, program evaluation

JEL Classification: J6, H4

Suggested Citation

Michaelides, Marios and Mueser, Peter and Smith, Jeffrey Andrew, Do Reemployment Programs for the Unemployed Work for Youth? Evidence from the Great Recession in the United States. IZA Discussion Paper No. 13324, Available at SSRN: https://ssrn.com/abstract=3620639 or http://dx.doi.org/10.2139/ssrn.3620639

Marios Michaelides (Contact Author)

University of Cyprus ( email )

75 Kallipoleos Street
Nicosia CY 1678, Nicosia P.O. Box 2
Cyprus

Peter Mueser

University of Missouri at Columbia ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States

Jeffrey Andrew Smith

University of Wisconsin - Madison

716 Langdon Street
Madison, WI 53706-1481
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Institute for the Study of Labor (IZA)

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Bonn, D-53072
Germany

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