Incentive-based active labor market programs: Insights from policy experimentation in Italy

B-Tier
Journal: Labour Economics
Year: 2025
Volume: 93
Issue: C

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Two programs providing financial incentives for reemployment of workers at risk of long-term unemployment are evaluated vis-à-vis intensive job-search assistance through policy experimentation involving about 10,000 job seekers in Italy: (i) a reemployment voucher that incentivizes specialized providers; (ii) a reemployment bonus that incentivizes job seekers directly. Results indicate that: the voucher is effective for men while the bonus works for women; each policy is no less effective than job-search assistance, but only the voucher is clearly cost effective; there are no side effects on post-treatment earnings or job duration. A one-sided job search model with endogenous search effort rationalizes these empirical findings.

Technical Details

RePEc Handle
repec:eee:labeco:v:93:y:2025:i:c:s0927537125000144
Journal Field
Labor
Author Count
2
Added to Database
2026-01-29