Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2021:4: Mandatory integration agreements for unemployed job seekers: a randomized controlled field experiment in Germany.

Gerard J. van den Berg (), Barbara Hofmann, Gesine Stephan and Arne Uhlendorff
Additional contact information
Gerard J. van den Berg: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Barbara Hofmann: FEA Nuremberg, Postal: FEA Nuremberg
Gesine Stephan: IAB Nuremberg, Postal: IAB Nuremberg
Arne Uhlendorff: IAB Nuremberg, Postal: IAB Nuremberg

Abstract: Integration Agreement (IA) are contracts between the employment agency and the unemployed, nudging the latter to comply with rules on search behavior. We designed and implemented an RCT involving thousands of newly unemployed workers, randomizing at the individual level both the timing of the IA and whether it is announced in advance. Administrative registers provide outcomes. Novel theoretical and methodological analyses provide tools to detect anticipation and suggest estimation by individual baseline employability. A small positive effect on entering employment is driven by individuals with adverse prospects. For them, early IA increase re-employment within a year from 45% to 53%.

Keywords: unemployment; monitoring; job search; active labor market policy; nudge; anticipation; randomized controlled trial

JEL-codes: C93; J64; J68

53 pages, March 25, 2021

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