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ONLINE – Applied Micro Workshop – Valentin Stumpe, “The Effects of Increased Job Search Autonomy”

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Patrick Arni, Amelie Schiprowski, and Valentin Stumpe: “The Effects of Increased Job Search Autonomy” Improving the unemployment-to-work transition of job seekers is an important policy agenda. Trading off control over job seekers against intrinsic motivation and the freedom where to apply, Public Employment Services (PES) have to decide on an effective method of governance. We use individual-level data from the Swiss UI registers to evaluate the effects of a large policy change in the canton of Bern. Over the course of the “BernTop” policy change, the PES loosened their grip on the job seekers, reducing job search requirements, abolishing mandatory job referrals, and referring to job seekers as “customers” to promote a more cooperative image. Using a dynamic difference-in-differences design, we find that unemployment duration increases by about ten days on average, with stronger effects in slack labor markets. Effects are stronger among job seekers for whom the job search requirements are predicted to be binding. Moreover, we find evidence that the reform induced job seekers to narrow their job search strategy. Preliminary evidence from social security registers suggests that the reform led to an increase in re-employment wages by 1.5% on average. Finally, we find positive market externalities on job seekers who live close to the border in an adjacent canton.

Event details
What
  • Presentation
When Jan 29, 2021
from 09:00 to 10:15
Where Zoom URL TBA via mailing list
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