Mandatory integration agreements for unemployed job seekers

Author: Barbara Hofmann, And Gesine Stephan, And Arne Uhlendorff, And Gerard J. van den Berg, And

Summary of Working paper 2021:4

Integration Agreement (IA) are contracts between the employment agency and the unemployed, nudging the latter to comply with rules on search behavior. We designed and implemented an RCT involving thousands of newly unemployed workers, randomizing at the individual level both the timing of the IA and whether it is announced in advance. Administrative registers provide outcomes. Novel theoretical and methodological analyses provide tools to detect anticipation and suggest estimation by individual baseline employability. A small positive effect on entering employment is driven by individuals with adverse prospects. For them, early IA increase re-employment within a year from 45% to 53%.