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.
Country
Netherlands
Publication Year
2006
Labour market services
Counselling and monitoring
Labour market status
Unemployed (All cat.)
Funding Source
Other
Outcome Variable
Employment status
Data Source
Administrative
Survey
Evaluation Method
Randomization
Regression