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Effectiveness of a job vacancy referral scheme

Journal Contribution - Journal Article

The public employment service (PES) makes use in many countries of vacancy referrals as to facilitate the matching between unemployed workers and vacancies. Based on a U+201Ctiming of eventsU+201D approach to control for selective participation, this study evaluates whether this policy instrument enhanced the transition to employment in Flanders (region in northern Belgium). Three referral types are distinguished: (1) referrals actively matched by a caseworker by phone or by e-mail; (2) automatic referrals, in which the match is accomplished by a software without caseworker intervention; (3) invitations, in which the referral is transmitted to the unemployed in a meeting with a caseworker. All three referral instruments are found to be effective, even many months after the transmission of the referral: The first and third referral type more than triples, respectively, doubles the transition rate to employment both in short- and long-run, while the automatic referrals enhance this rate by 50% in the first two months and doubles it in the long-run.
Journal: IZA Journal of Labor Policy
Issue: 1
Volume: 6
Number of pages: 1
Publication year:2017