Estimating equilibrium effects of job search assistance

Paul Muller, Bas van der Klaauw, P.A. Gautier, Michael Rosholm, Michael Svarer

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Abstract

Identifying policy-relevant treatment effects from randomized experiments requires the absence of spillovers between participants and nonparticipants (SUTVA) or variation in observed treatment levels. We find that SUTVA is violated for a Danish activation program for unemployed workers. Using a difference-in-differences model, we show that nonparticipants in the experiment regions find jobs more slowly after the introduction of the program than workers.

Original languageEnglish
Pages (from-to)1073-1125
Number of pages53
JournalJournal of Labor Economics
Volume36
Issue number4
Early online date31 Jul 2018
DOIs
Publication statusPublished - Oct 2018

Funding

We thank Jean Marc Robin, Philipp Kircher, and Xiaoming Cai for useful comments, as well as seminar and conference participants at the University of Edinburgh, Boston University, University of Essex, Institut national de la statistique et des études économiques (INSEE) Crest, Royal Holloway University, University College London, Vrije Universiteit Amsterdam, Georgetown University, the University of Cambridge, the University of Oxford, the University of Wisconsin– Madison, and the Annual Search and Matching conference in Cyprus. Bas van der Klaauw acknowledges financial support from a Vici grant from the Dutch science foundation (NWO). We thank Jean Marc Robin, Philipp Kircher, and Xiaoming Cai for useful comments, as well as seminar and conference participants at the University of Edinburgh, Boston University, University of Essex, Institut national de la statistique et des études économiques (INSEE) Crest, Royal Holloway University, University College London, Vrije Universiteit Amsterdam, Georgetown University, the University of Cambridge, the University of Oxford, the University of Wisconsin– Madison, and the Annual Search and Matching conference in Cyprus. Bas van der Klaauw acknowledges financial support from a Vici grant from the Dutch science foundation (NWO). Contact the corresponding author, Paul Muller, at paul.muller @gu.se. Information concerning access to the data used in this paper is available as supplementary material online.

FundersFunder number
University of Wisconsin-Madison
Boston University
Georgetown University
University of Essex
University of Cambridge
University College London
University of Oxford
University of Edinburgh
Vrije Universiteit Amsterdam
Nederlandse Organisatie voor Wetenschappelijk Onderzoek

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