Learning & Work Seminar in Maastricht: Complexity and Effectiveness of Public Policy – University of Copenhagen

Labor Market Performance > News > Archive > Learning & Work Semina...

27 August 2018

Learning & Work Seminar in Maastricht: Complexity and Effectiveness of Public Policy

Robert Mahlstedt presents his work on Complexity and the Effectiveness of Public Policy.

Abstract

This paper studies how job seekers' understanding of labor market policy affects their job search behavior and later labor market outcomes. We conduct a large scale field experiment in the Danish labor market, in which we exogenously vary individuals' understanding of the prevailing rules and incentives related to job search. Earlier evidence has shown that job seekers find these aspects of the UI system difficult to understand and that they exhibit limited knowledge of the underlying UI benefit rules. The experiment exploits a newly developed web-based tool that reduces complexity for job seekers by providing them real-time personalized information about their current benefit situation as well as information about the most relevant rules regarding UI benefits, search requirements, and possible sanctions. We study the causal impact of our intervention in survey and administrative data containing comprehensive information on individuals' employment status and earnings.