The impact of periodic interviews on unemployment duration: Evidence from the 2017 Finnish reform

Abstract

AbstractIn 2017, a Finnish policy reform intensified the Public Employment Services' practice of periodically interviewing unemployed jobseekers. This study used high‐quality administrative data to analyse the effect of interviews on unemployment duration. We used a difference‐in‐differences approach that exploited regional variations in treatment intensity. Our results show that a 10 percentage point increase in interview probability increased the monthly hazard rate of employment by 3.1 per cent, with the effect being strongest among jobseekers aged 25–34 and jobseekers with a low education level. Also, our results demonstrate a strong effect on participation in active labour market programmes.