Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Treatment versus regime effects of carrots and sticks
Authors: Arni, Patrick
van den Berg, Gerard
Lalive, Rafael
et. al: No
DOI: 10.1080/07350015.2020.1784744
Published in: Journal of Business & Economic Statistics
Volume(Issue): 40
Issue: 1
Page(s): 111
Pages to: 127
Issue Date: 3-Aug-2020
Publisher / Ed. Institution: Taylor & Francis
ISSN: 0735-0015
1537-2707
Language: English
Subjects: Active labor market program; Caseworker; Earnings; Employment; Policy regime; Unemployment
Subject (DDC): 331: Labor economics
Abstract: Public employment service (PES) agencies and caseworkers (CWs) often have substantial leeway in the design and implementation of active labor market policies for the unemployed, and they use policies to a varying extent. We estimate regime effects which capture how CW and PES affect outcomes through different policy intensities. These operate potentially on all forward-looking job seekers regardless of actual treatment exposure. We consider regime effects for two sets of programs, supporting (“carrots”) and restricting (“sticks”) programs, and contrast regime and treatment effects on unemployment durations, employment, and post-unemployment earnings using register data that contain PES and caseworker identifiers for about 130,000 job spells. Regime effects are important: earnings are higher in a PES if carrot-type programs are used more intensively and stick-type programs are used less intensively. Actual treatment effects on earnings have a similar order of magnitude as regime effects and are positive for participation in carrot-type programs and negative for stick-type treatments. Regime effects are economically substantial. A modest increase in the intended usage of carrots and sticks reduces the total cost of an unemployed individual by up to 7.5%.
URI: https://digitalcollection.zhaw.ch/handle/11475/29845
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Labor, Digital and Regional Economics (CLDR)
Appears in collections:Publikationen School of Management and Law

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Arni, P., van den Berg, G., & Lalive, R. (2020). Treatment versus regime effects of carrots and sticks. Journal of Business & Economic Statistics, 40(1), 111–127. https://doi.org/10.1080/07350015.2020.1784744
Arni, P., van den Berg, G. and Lalive, R. (2020) ‘Treatment versus regime effects of carrots and sticks’, Journal of Business & Economic Statistics, 40(1), pp. 111–127. Available at: https://doi.org/10.1080/07350015.2020.1784744.
P. Arni, G. van den Berg, and R. Lalive, “Treatment versus regime effects of carrots and sticks,” Journal of Business & Economic Statistics, vol. 40, no. 1, pp. 111–127, Aug. 2020, doi: 10.1080/07350015.2020.1784744.
ARNI, Patrick, Gerard VAN DEN BERG und Rafael LALIVE, 2020. Treatment versus regime effects of carrots and sticks. Journal of Business & Economic Statistics. 3 August 2020. Bd. 40, Nr. 1, S. 111–127. DOI 10.1080/07350015.2020.1784744
Arni, Patrick, Gerard van den Berg, and Rafael Lalive. 2020. “Treatment versus Regime Effects of Carrots and Sticks.” Journal of Business & Economic Statistics 40 (1): 111–27. https://doi.org/10.1080/07350015.2020.1784744.
Arni, Patrick, et al. “Treatment versus Regime Effects of Carrots and Sticks.” Journal of Business & Economic Statistics, vol. 40, no. 1, Aug. 2020, pp. 111–27, https://doi.org/10.1080/07350015.2020.1784744.


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