Do Job Counselors Matter? Measuring Counselors Value-Added in Job Search

Abstract

It is generally accepted that job search assistance programs shorten periods of unemployment, but little is known about the role played by job counselors. Using exhaustive administrative data from the French Public Employment Service (PES), we provide unbiased estimates of counselors value-added in the Parisian region. We find that having a counselor one standard deviation higher in the distribution of value-added translates into an increase of 8.4% (13.2%) in the probability of finding a (stable) job within 6 months. We document the types of practices that make a high value-added counselor, exploiting rich data on meetings, proposed vacancies, training, and job search assistance programs for jobseekers. We find that depending on the objective pursued (fast or stable exits) and the jobseeker’s characteristics, high value-added counselors are not the same and do not offer the same services. This points to a potential trade-off between practices that foster a rapid exit from unemployment and those that favor better quality matches.

Keywords: Labor, Public Policy, Job Search, Active Labor Market Policies, unemployment