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Are Reemployment Services Effective? Experimental Evidence from the Great Recession

Author

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  • Marios Michaelides
  • Peter Mueser
Abstract
We report the results of a random assignment study of a reemployment program implemented in the United States during the Great Recession which required Unemployment Insurance (UI) recipients to undergo an eligibility review and receive comprehensive job-counseling services. The program expedited participant exit from UI, produced substantial UI savings, and improved participant employment rates and earnings. These effects are associated with: (1) increased participant UI exit up to the time of services receipt, indicating an effect due to participant efforts to avoid program activities or failure to meet UI eligibility requirements; and (2) greater exit subsequent to services receipt, implying that the services themselves helped participants conduct an effective job search. Our findings provide compelling evidence that reemployment programs can be effective during recessions.

Suggested Citation

  • Marios Michaelides & Peter Mueser, 2015. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," University of Cyprus Working Papers in Economics 06-2015, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:06-2015
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    References listed on IDEAS

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    Cited by:

    1. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    2. Marios Michaelides & Peter R. Mueser & Jeffrey A. Smith, 2021. "Do Reemployment Programs For The Unemployed Work For Youth? Evidence From The Great Recession In The United States," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 162-185, January.
    3. Dayanand S. Manoli & Marios Michaelides & Ankur Patel, 2018. "Long-Term and Heterogeneous Effects of Job-Search Assistance," NBER Working Papers 24422, National Bureau of Economic Research, Inc.
    4. Laporšek Suzana & Vodopivec Milan & Vodopivec Matija, 2022. "Activation programs for unemployment benefit recipients in Slovenia," Review of Economic Perspectives, Sciendo, vol. 22(2), pages 75-95, June.
    5. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.

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    More about this item

    Keywords

    Great Recession; job search services; unemployment; unemployment insurance; program evaluation;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H4 - Public Economics - - Publicly Provided Goods

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