Gerhard van den Bergh
and Bas van deer Klaauw
Gerhard van den Bergh: Free University Amsterdam, Tinbergen Institute, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
Bas van deer Klaauw: Free University Amsterdam and Scholar, Postal: Free University Amsterdam, Department of Economics , De Boelelaan 1105 , NL-1081 HV Amsterdam , The Netherlands
Abstract: We investigate the effect of conseling 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 show that counseling and monitoring do not affect the exit rate to work. Monitoring causes a shift from informal to formal job search. We combine our empirical results to the results from our theoretical analysis and the existing empirical literature, to establish a comprehensive analysis of the effectiveness of these policies.
50 pages, August 24, 2001
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