Does the public employment service affect search effort and outcomes
Denis Fougère
- Fonction : Auteur
- PersonId : 742600
- IdHAL : fougere-denis
- ORCID : 0000-0001-9287-6138
- IdRef : 031093477
Muriel Roger
- Fonction : Auteur
- PersonId : 10593
- IdHAL : muriel-roger
- ORCID : 0000-0002-7820-5175
- IdRef : 120130297
Résumé
In this paper, we examine the disincentive effects of the public employment service on the search effort of unemployed workers and on their exit rate from unemployment. For that purpose, we specify a structural search model with fixed and variable costs of search in which unemployed workers select their optimal search intensity given the exogenous arrival rate of job contacts coming from the public employment agency. Because the theoretical effect of an increase in this exogenous job contact arrival rate on the structural exit rate from unemployment is ambiguous, we estimate this model using individual unemployment duration data. Our results show that the exit rate from unemployment increases with the arrival rate of job contacts obtained by the public employment service, especially for low-educated and low-skilled workers. They also show that the search effort is more costly for low-educated women and low-skilled adult unemployed workers. This last result suggests that a public employment agency that matches searchers and employers is beneficial, in the sense that it saves searchers in terms of search costs they would otherwise bear.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Does the public employment service affect search effort and outcomes
|
Résumé |
en
In this paper, we examine the disincentive effects of the public employment service on the search effort of unemployed workers and on their exit rate from unemployment. For that purpose, we specify a structural search model with fixed and variable costs of search in which unemployed workers select their optimal search intensity given the exogenous arrival rate of job contacts coming from the public employment agency. Because the theoretical effect of an increase in this exogenous job contact arrival rate on the structural exit rate from unemployment is ambiguous, we estimate this model using individual unemployment duration data. Our results show that the exit rate from unemployment increases with the arrival rate of job contacts obtained by the public employment service, especially for low-educated and low-skilled workers. They also show that the search effort is more costly for low-educated women and low-skilled adult unemployed workers. This last result suggests that a public employment agency that matches searchers and employers is beneficial, in the sense that it saves searchers in terms of search costs they would otherwise bear.
|
Auteur(s) |
Denis Fougère
1, 2, 3
, Jacqueline Pradel
4
, Muriel Roger
5, 6
1
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier, 91120 Palaiseau
- France
2
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
3
IZA -
Institute for the Study of Labor
( 142142 )
- Allemagne
4
EUREQUA -
Equipe Universitaire de Recherche en Economie Quantitative
( 5545 )
- Maison des Sciences Économiques 106-112 Bd de l'Hôpital 75647 Paris Cedex 13
- France
5
LEA -
Laboratoire d'Economie Appliquée
( 37750 )
- France
6
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Non spécifiée
|
Date de publication |
2009-10
|
Volume |
53
|
Page/Identifiant |
846-869
|
Numéro |
7
|
Public visé |
Scientifique
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Indexation contrôlée |
|
Mots-clés |
en
Job search, Search intensity, Public employment agency, Simulated maximum likelihood
|
DOI | 10.1016/j.euroecorev.2009.01.006 |
ProdINRA | 178251 |
UT key WOS | 000271364800009 |
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