How to Help Unemployed Find Jobs Quickly: Experimental Evidence from a Mandatory Activation Program

IZA Discussion Paper No. 2504

CentER Discussion Paper Series No. 2006-126

37 Pages Posted: 11 Jan 2007

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

Multiple version iconThere are 3 versions of this paper

Date Written: December 2006

Abstract

This paper investigates how a mandatory activation program in Denmark affects the job finding rate of unemployed workers. The activation program was introduced in an experimental setting where about half of the workers who became unemployed in the period from November 2005 to March 2006 were randomly assigned to the program while the other half was not. It appears that the activation program is very effective. The median unemployment duration of the control group is 14 weeks, while it is 11.5 weeks for the treatment group. The analysis shows that the job finding rate in the treatment group is 30% higher than in the control group. This result is mainly driven by the more intensive contacts between the unemployed and the public employment service.

Keywords: unemployment insurance, unemployment duration, experiment

JEL Classification: C41, H55, J64, J65

Suggested Citation

Graversen, Brian Krogh and van Ours, Jan C., How to Help Unemployed Find Jobs Quickly: Experimental Evidence from a Mandatory Activation Program (December 2006). IZA Discussion Paper No. 2504; CentER Discussion Paper Series No. 2006-126. Available at SSRN: https://ssrn.com/abstract=955835

Brian Krogh Graversen

Danish Economic Councils ( email )

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

Jan C. Van Ours (Contact Author)

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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