Monday, 3 December 2012

Vacancy Referrals, Job Search, and the Duration of Unemployment: A Randomized Experiment

an article by Per Engström, Patrik Hesselius and Bertil Holmlund (Uppsala University, Sweden) published in LABOUR Volume 26 Issue 4 (December 2012)

Abstract

One goal of the Public Employment Service is to facilitate matching between unemployed job-seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements.

The referral of job-seekers to vacancies is one instrument used for these purposes.

We report results from a randomised Swedish experiment where the outcome of referrals is examined.

To what extent do unemployed individuals actually apply for the jobs they are referred to?

Does information to job-seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment?

The experiment indicates that a relatively large fraction (one-third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people.

However, we find no significant impact on the duration of unemployment.

JEL classifications: C99, J64, J68


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