TY - JOUR A1 - Caliendo, Marco A1 - Künn, Steffen A1 - Mahlstedt, Robert T1 - The return to labor market mobility BT - an evaluation of relocation assistance for the unemployed JF - Journal of Public Economics N2 - In many European countries, labor markets are characterized by high regional disparities in terms of unemployment rates on the one hand and low geographical mobility among the unemployed on the other hand. In order to counteract the geographical mismatch of workers, the German active labor market policy offers a subsidy covering moving costs to incentivize unemployed job seekers to search/accept jobs in distant regions. Based on administrative data, this study provides the first empirical evidence on the impact of this subsidy on participants' prospective labor market outcomes. We use an instrumental variable approach to take endogenous selection based on observed and unobserved characteristics into account when estimating causal treatment effects. We find that unemployed job seekers who participate in the subsidy program and move to a distant region receive higher wages and find more stable jobs compared to non-participants. We show that the positive effects are (to a large extent) the consequence of a better job match due to the increased search radius of participants. KW - Evaluation KW - Active labor market policy KW - Labor market mobility KW - Instrumental variable approach Y1 - 2017 U6 - https://doi.org/10.1016/j.jpubeco.2017.02.008 SN - 0047-2727 VL - 148 SP - 136 EP - 151 PB - Elsevier CY - Lausanne ER - TY - JOUR A1 - Caliendo, Marco A1 - Mahlstedt, Robert A1 - Mitnik, Oscar A. T1 - Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies JF - Labour economics : an international journal KW - Matching KW - Unconfoundedness KW - Unobservables KW - Selection bias KW - Personality traits KW - Active labor market policy Y1 - 2017 U6 - https://doi.org/10.1016/j.labeco.2017.02.001 SN - 0927-5371 SN - 1879-1034 VL - 46 SP - 14 EP - 25 PB - Elsevier CY - Amsterdam ER -