Are Reemployment Services Effective? Experimental Evidence from the Great Recession

Working Paper Number: 
WP 15-09

We report the results of a random assignment study of a reemployment program implemented in the United States during the Great Recession. The program expedited participant exit from Unemployment Insurance (UI), produced significant UI savings, and improved participant employment rates and earnings. These effects are associated with: (1) increased participant UI exit prior to services receipt, indicating an effect due to participant efforts to avoid program requirements; and (2) greater exit subsequent to services, 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.

JEL Codes: 
EJ6, H4

Marios Michaelides