The return to labor market mobility: an evaluation of relocation assistance for the unemployed

"In many European countries, labor markets are characterized by high regional disparities in terms of unemployment rates on the one hand and low geographical mobility among the unemployed on the other hand. This is somewhat surprising and raises the question of why only minor shares of unemploy...

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Bibliographic Details
Main Authors: Caliendo, Marco, Künn, Steffen, Mahlstedt, Robert
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2015
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19111902124919391849-The-return-to-labor-market-mob.htm
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author Caliendo, Marco
Künn, Steffen
Mahlstedt, Robert
author_facet Caliendo, Marco
Künn, Steffen
Mahlstedt, Robert
collection Library items
description "In many European countries, labor markets are characterized by high regional disparities in terms of unemployment rates on the one hand and low geographical mobility among the unemployed on the other hand. This is somewhat surprising and raises the question of why only minor shares of unemployed job seekers relocate in order to find employment. The German active labor market policy offers a subsidy covering moving costs to incentivize unemployed job seekers to search/accept jobs in distant regions. Based on administrative data, this study provides the first empirical evidence on the impact of this subsidy on participants' prospective labor market outcomes. We use an instrumental variable approach to take endogenous selection based on observed and unobserved characteristics into account when estimating causal treatment effects. We find that unemployed job seekers who participate in the subsidy program and move to a distant region receive higher wages and find more stable jobs compared to non-participants. We show that the positive effects are (to a large extent) the consequence of a better job match due to the increased search radius of participants."
format TEXT
geographic Germany
id 19111902124919391849_48a4a722244644b1b561ce102ea5d78f
institution ETUI-European Trade Union Institute
is_hierarchy_id 19111902124919391849_48a4a722244644b1b561ce102ea5d78f
is_hierarchy_title The return to labor market mobility: an evaluation of relocation assistance for the unemployed
language English
physical 54 p.
Digital
publishDate 2015
publisher Bonn
IZA
spellingShingle Caliendo, Marco
Künn, Steffen
Mahlstedt, Robert
activation
job searching
labour mobility
work incentive
labour market policy
employment subsidy
The return to labor market mobility: an evaluation of relocation assistance for the unemployed
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=108957992613
title The return to labor market mobility: an evaluation of relocation assistance for the unemployed
topic activation
job searching
labour mobility
work incentive
labour market policy
employment subsidy
url https://www.labourline.org/KENTIKA-19111902124919391849-The-return-to-labor-market-mob.htm