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. Url or DOI http://dx.doi.org/10.1111/j.1468-2354.2006.00399.x Authors Bas van der Klaauw Gerard J. Van Den Berg Country Netherlands Publication Year 2006 Ranges Intervention Intervention Start Year 1998 Intervention End Year 1999 Evaluation Evaluation Start Year 1998 Evaluation End Year 1999 Policy field Labour market services Counselling and monitoring Target group Labour market status Unemployed (All cat.) Details Funding Source Other Outcome Variable Employment status Data Source Administrative Survey Evaluation Method Randomization Regression