Does Job Search Assistance Reduce Unemployment? Evidence on Displacement Effects and Mechanisms

A-Tier
Journal: Journal of Labor Economics
Year: 2025
Volume: 43
Issue: 1
Pages: 47 - 81

Authors (6)

Maria Cheung (not in RePEc) Johan Egebark (not in RePEc) Anders Forslund (not in RePEc) Lisa Laun (Government of Sweden) Magnus Rödin (not in RePEc) Johan Vikström (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 6 authors) × 2.0x A-tier

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

Abstract

Using a two-level randomized experiment, we find that job search assistance (JSA) reduces unemployment among the treated but also creates displacement effects. Analyses of mechanisms show that vacancy referrals from caseworkers to job seekers explain the positive effects for the treated by helping the job seekers apply to the most relevant jobs earlier. We also find that the overall assessment of JSA hinges on how the displacement effects hit the labor market and to what extent firms react by opening new vacancies. The displacement is larger in weak labor markets, and we find no displacement of resources.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/726384
Journal Field
Labor
Author Count
6
Added to Database
2026-01-25