Courses or individual counselling: does job search assistance work?

Abstract

How does labour market policy affect welfare recipients and long-term unemployed people? We investigate whether job search assistance (JSA) helps disadvantaged individuals to find jobs and whether courses or individual counselling is more successful in reaching this goal. To evaluate individual employment effects, we apply a quasi-experimental design and construct suitable comparison groups using propensity score matching methods. We compare participants to nonparticipants as well as participants of both schemes directly. Our article benefits from access to rich administrative data from the German Federal Employment Agency. When comparing participants to nonparticipants, results suggest that the individual JSA does not affect participants’ employment prospects at all and that the course JSA even decreased their employment chances. At the same time, differences in these effects can be ascribed to programme design differences and to differences in the groups of participants. Therefore, we compare both programmes directly to each other, that is, we use the other programme participants as a comparison group, respectively. We found some evidence that individual JSA performs better than course JSA.