Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87251
Authors: 
Gautier, Pieter
Muller, Paul
van der Klaauw, Bas
Rosholm, Michael
Svarer, Michael
Year of Publication: 
2012
Series/Report no.: 
Tinbergen Institute Discussion Paper 12-071/3
Abstract: 
Randomized experiments provide policy relevant treatment effects if there areno spillovers between participants and nonparticipants. We show that thisassumption is violated for a Danish activation program for unemployed workers.Using a difference-in-difference model we show that the nonparticipantsin the experiment regions find jobs slower after the introduction of the activationprogram (relative to workers in other regions). We then estimate anequilibrium search model. This model shows that a large scale role out of theactivation program decreases welfare, while a standard partial microeconometriccost-benefit analysis would conclude the opposite.
Subjects: 
randomized experiment
policy-relevant treatment effects
job search
JEL: 
C21
E24
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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