Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62485
Authors: 
Gautier, Pieter
Muller, Paul
van der Klaauw, Bas
Rosholm, Michael
Svarer, Michael
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6748
Abstract: 
Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the nonparticipants in the experiment regions find jobs slower after the introduction of the activation program (relative to workers in other regions). We then estimate an equilibrium search model. This model shows that a large scale role out of the activation program decreases welfare, while a standard partial microeconometric cost-benefit analysis would conclude the opposite.
Subjects: 
randomized experiment
policy-relevant treatment effects
job search
externalities
indirect inference
JEL: 
C21
E24
J64
Document Type: 
Working Paper

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