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A Randomized Experiment on Improving Job Search Skills of Older Unemployed Workers
Active labor market programs targeted at older unemployed workers are often believed to be ineffective. We exploit a large-scale randomized experiment involving approximately 50,000 older unemployed workers to evaluate an intensive job search assistance program that focuses on exploiting the social network. Participation in the program increases exits from unemployment insurance by 4.4 percentage points. Program participation reduces cumulative benefit payments by about €715, exceeding the program costs of €470. Participants compensate the reduced benefits receipt with higher earnings. We find that participants change their job search behavior according to the content of the program, and that both the trainer and the training group composition affect the program effectiveness.
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