Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2012-07-18
Number: 12-071/3
Author-Name: Pieter Gautier
Author-Workplace-Name: VU University Amsterdam
Author-Name: Paul Muller
Author-Workplace-Name: VU University Amsterdam
Author-Name: Bas van der Klaauw
Author-Workplace-Name: VU University Amsterdam, and CEPR
Author-Name: Michael Rosholm
Author-Workplace-Name: Aarhus University
Author-Name: Michael Svarer
Author-Workplace-Name: Aarhus University
Title: Estimating Equilibrium Effects of Job Search Assistance
Abstract: Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers.Using a difference-in-difference model we show that the nonparticipants in the experiment regions find jobs slower after the introduction of the activation program (relative to workers in other regions). We then estimate anequilibrium search model. This model shows that a large scale role out of the activation program decreases welfare, while a standard partial microeconometric cost-benefit analysis would conclude the opposite.
Classification-JEL: C21, E24, J64
Keywords: randomized experiment, policy-relevant treatment effects, job search,
File-Url: https://papers.tinbergen.nl/12071.pdf
File-Format: application/pdf
File-Size: 426252 bytes
Handle: RePEc:tin:wpaper:20120071