TY - RPRT AU - Gautier, Pieter A. AU - Muller, Paul AU - Klaauw, Bas van der AU - Rosholm, Michael AU - Svarer, Michael TI - Estimating Equilibrium Effects of Job Search Assistance PY - 2012/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6748 UR - https://www.iza.org/publications/dp6748 AB - Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the nonparticipants in the experiment regions find jobs slower after the introduction of the activation program (relative to workers in other regions). We then estimate an equilibrium search model. This model shows that a large scale role out of the activation program decreases welfare, while a standard partial microeconometric cost-benefit analysis would conclude the opposite. KW - job search KW - policy-relevant treatment effects KW - randomized experiment KW - externalities KW - indirect inference ER -