Counseling and Monitoring of Unemployed Workers: Theory and
Evidence from a Controlled Social Experiment
Gerard J. van den Berg
Bas van der Klaauw
International Economic Review 47, 895-936 (2006).
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.
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Last updated: October 9, 2006.