COUNSELING AND MONITORING OF UNEMPLOYED WORKERS: THEORY AND EVIDENCE FROM A CONTROLLED SOCIAL EXPERIMENT

Gerard J. van den Berg, Bas Van Der Klaauw

Research output: Contribution to journalArticle (Academic Journal)

90 Citations (Scopus)

Abstract

We investigate the effect of counseling and monitoring on the individual transition rate to employment. We theoretically analyze these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data concerning a social experiment with full randomization and compliance. The results do not provide evidence that counseling and monitoring affect the exit rate to work. Monitoring causes a shift from informal to formal job search. We combine our empirical results with the results from our theoretical analysis and the existing empirical literature, to establish a comprehensive analysis of the effectiveness of these policies.
Original languageEnglish
Pages (from-to)895–936
Number of pages41
JournalInternational Economic Review
DOIs
Publication statusPublished - 27 Jul 2006

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