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NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Roland Rathelot

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Working Papers

December 2012Do Labor Market Policies Have Displacement Effects? Evidence from a Clustered Randomized Experiment
with Bruno Crépon, Esther Duflo, Marc Gurgand, Philippe Zamora: w18597
This paper reports the results from a randomized experiment designed to evaluate the direct and indirect (displacement) impacts of job placement assistance on the labor market outcomes of young, educated job seekers in France. We use a two-step design. In the first step, the proportions of job seekers to be assigned to treatment (0%, 25%, 50%, 75% or100%) were randomly drawn for each of the 235 labor markets (e.g. cities) participating in the experiment. Then, in each labor market, eligible job seekers were randomly assigned to the treatment, following this proportion. After eight months, eligible, unemployed youths who were assigned to the program were significantly more likely to have found a stable job than those who were not. But these gains are transitory, and they appear to have come...

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