Labor Seminars Amsterdam

Rafael Lalive (University of Lausanne, Switzerland)
Tuesday, 8 November 2016

Finding jobs for long-term unemployed job seekers is a key challenge. We study whether Hestia, a private job search assistance program helps job seekers find and keep jobs, in Geneva. In a randomized field experiment, we follow unemployment benefit recipients two years prior to five years after assignment to treatment. We find that Hestia’s clients enter jobs earlier, especially during the first six months after the start of the experiment. Yet, the initial employment gain dissipates completely, and becomes even negative and significant two years after assignment. Hestia’s clients also leave jobs more quickly especially in the second year of their tenure. Average accepted wages are similar across both groups initially, but the first quartile of accepted wages is lower among job seekers placed by Hestia after 18 months. Joint with Lionel Cottiery, Pierre Kempeneersz, and Yves Yves Flückiger.