The Labor Market Effects of U.S. Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession
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We present experimental evidence on four U.S. reemployment programs targeting Unemployment Insurance (UI) recipients during the Great Recession. All programs reduced UI spells, produced UI savings that exceeded program costs, and increased employment rates. The services-referral program had the smallest effects, occurring because of voluntary participant exit from UI to avoid requirements. The two programs that reviewed participants’ UI eligibility produced higher effects because they induced voluntary exits and disqualified participants not engaged in active job search or for other reasons. The program requiring participation in both the eligibility review and jobcounseling services was the most effective, indicating that services improved participants’ jobsearch efforts.