Risk Scores for Long-Term Unemployment and the Assignment to Job Search Counseling

Abstract

This paper analyses how risk profiling is used to assign unemployed job seekers to job search counseling in Flanders, Belgium. We compare algorithmic selection to self-selection and selection by job search counselors. We discuss practical challenges for the implementation of risk profiling and highlight avenues for further research. We find that algorithmic assignment is used for only a small fraction of the sample and that job search counselors appear to have valuable private information on job seekers' reemployment prospects beyond what is captured by the algorithmic risk score.