TY  - RPRT
A1  - Caliendo, Marco
A1  - Künn, Steffen
A1  - Mahlstedt, Robert
T1  - The Intended and Unintended Effects of Promoting Labor Market Mobility
T2  - CEPA Discussion Papers
N2  - Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility – as intended – causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers.
T3  - CEPA Discussion Papers - 42 
KW  - Job Search
KW  - Active Labor Market Policy
KW  - Labor Market Mobility
KW  - Unintended Consequence
KW  - Search Frictions
Y1  - 2022
U6  - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-535229
SN  - 2628-653X
ER  -