The Direct and Indirect Effects of Online Job Search Advice

Link al seminario:

Abstract: We study how personalized online job search advice regarding occupational job opportunitiesand labor demand affects the reemployment prospects of unemployed workers and potentialspillover effects on other job seekers. In a large-scale field experiment, we provide occupa-tional recommendations and vacancy information through a new online dashboard that ispart of the official online platform of the Danish public employment agency. A clusteredrandomization procedure with varying treatment intensities across different regions allowsus to account for treatment spillovers. Our results are twofold. When the share of treated jobseekers is below 50%, online job search advice is highly effective and increases working hoursand earnings by 7 – 9%. However, at the same time, we find evidence for substantial negativespillover effects on other treated job seekers. In regions with higher treatment intensities,the labor market outcomes of treated individuals are at a level similar to that of the controlgroup. Further analyses suggest that the negative spillover effects are provoked by crowdingout among job seekers applying for the same vacancies, especially in occupations that arehighlighted by the experiment.