Is there a rationale to contact the unemployed right from the start? Evidence from a natural field experiment

• Published in: Labour economics Vol. 45; pp. 158 - 168
• Main Authors: Landeghem, Bert Van, Cörvers, Frank, Grip, Andries de
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.04.2017
• Subjects: Active Labour Market Policies; Natural field experiment; Unemployment; Active Labour Market Policies; D04; J64; Natural field experiment; J68; Unemployment; D61
• ISSN: 0927-5371; 1879-1034
• DOI: 10.1016/j.labeco.2016.11.009

Active Labour Market Policies (ALMPs) often exclusively target towards the long-term unemployed. Although it might be more efficient to intervene earlier in order to prevent long-term unemployment rather than to cure it, the climate of austerity in Eurozone countries is spreading a tendency to further reduce the basic counselling for those who become unemployed. This study investigates the impact on employment chances of a relatively light and inexpensive intervention. In a field experiment in a public employment office in Flanders, a random selection of clients were invited for a mandatory information session in the first month of the unemployment spell, while the control group were invited after four months of unemployment. Although the average intention-to-treat effect we find is not significant, the early intervention appears to be very beneficial for those with low education. •Many Active Labour Market Policies target the long-term unemployed.•Austerity measures further reduce the support available for those who have just lost their job.•We investigate a light and inexpensive coaching programme started right after entering unemployment.•Contacting the unemployed right from the start improves the job finding rates especially for the low-educated.