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UNITED STATES DEPARTMENT OF LABOR

Do reemployment programs for the unemployed work for youth? Evidence from the great recession in the United States [Idaho REA vs. Control] (Michaelides et al., 2020)

Review Guidelines

Causal Evidence Guidelines

Absence of conflict of interest. 

Citation

Michaelides, M., Mueser, P. R., & Smith, J. A. (2020). Do reemployment programs for the unemployed work for youth? Evidence from the great recession in the United States. IZA Discussion Papers, No. 13324. [Idaho REA vs. Control]

Highlights

  • The study's objective was to examine the impact of reemployment programs on public benefits receipt, employment, and earnings outcomes for youth. This profile focuses on the comparison between the Idaho Reemployment and Eligibility Assessment (REA) program and the control group. The authors investigated similar research questions for other contrasts, the profiles of which can be found here:
  • The study was a randomized controlled trial at the Idaho site. Using unemployment insurance (UI) claims data and wage records collected by the state of Idaho, the authors conducted statistical models to compare the outcomes between treatment and control group members.  
  • The study found significant negative relationships between participation in the Idaho REA program and exhausting regular UI benefits, the number of weeks receiving UI benefits, and the overall amount of regular UI benefits received.  
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Idaho Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Intervention Examined

The Reemployment and Eligibility Assessment (REA) Initiative in Idaho

Features of the Intervention

The Idaho REA program was the state implementation of the larger Reemployment and Eligibility Assessment program framework. The REA program was created to encourage reemployment and reduce burden imposed on unemployment insurance (UI) programs through the establishment of eligibility reviews to ensure that beneficiaries were eligible for benefits. REA program participants in Idaho were required to complete eligibility reviews online and if selected for follow-up sessions, attend additional reviews in-person at local public employment offices.  

Features of the Study

This study was part of a three-site investigation of reemployment programs during the Great Recession. This profile focuses on the Idaho REA vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Idaho REA program. To be eligible, participants had to be receiving UI benefits in the state of Idaho, eligible for REA services, and under the age of 25. Of the 1,956 eligible UI recipients, 79% were assigned to REA and 21% were assigned to the control group. Participants who were randomly assigned to the REA treatment group received notification letters informing them of the requirement to complete an eligibility review. A subsample of participants was required to complete phone calls or in-person visits to verify employer contacts or completion of job search services. Participants randomly assigned to the control group were also eligible for REA services; however, they were not required to fulfill the program requirements to continue receiving UI benefits. Of the participants in the sample, the majority were male and White, had a high school diploma or above, and were blue collar workers. Data sources included UI claims data and wage records collected by the state of Idaho. The authors used statistical models to compare the outcomes of treatment and control group members.  

Findings

  • Public benefits receipt. The study found that participation in the Idaho REA program had a significant negative effect on the number of weeks collecting regular UI benefits, the overall dollar amount of regular UI benefits received, and exhausting regular UI benefits.  
  • Employment. The study did not find any significant effects between participation in the REA program and employment rates in the first two quarters following program entry.  
  • Earnings and wages. The study did not find any significant effects between participation in the REA program and earnings in the quarters following program entry.  

Causal Evidence Rating

The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Idaho Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Reviewed by CLEAR

May 2024

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