Melbourne Institute of Applied Economic and Social Research - Research Publications

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Subject: Business and Management × Author: Borland, Jeffrey × Author: Tseng, Yi-Ping ×

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    Does a minimum job search requirement reduce time on unemployment payments? Evidence from the Jobseeker Diary in Australia
    Borland, J ; Tseng, Y-P (INDUSTRIAL LABOR RELAT REV, 2007-04-01)
    This study examines the impact of the Jobseeker Diary (JSD), a program designed to increase the job search effort of unemployed persons in Australia. The JSD program is distinguished by combining a focus on work search verification with large scale implementation. Applying a quasi-experimental matching method to data on unemployment spells occurring in 1997–98, the authors find that JSD participation was associated with an increased rate of exit from unemployment payment recipiency and a shorter total time spent on payments. Payment receipt duration is estimated to have fallen for about one-half of JSD participants. The largest effects of the JSD occurred for payment recipients for whom labor demand conditions were the most favorable. Cost-benefit analysis suggests a fairly large net societal gain per program participant.