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The labor market effects of US reemployment policy: Lessons from an analysis of four programs during the great recession [Florida PREP vs. Control] (Michaelides & Mueser, 2020)

Review Guidelines

Absence of conflict of interest. 

 

Citation

Michaelides, M., & Mueser, P. (2020). The labor market effects of US reemployment policy: Lessons from an analysis of four programs during the great recession. Journal of Labor Economics, 38(4), 1099-1140. https://doi.org/10.1086/706485 [Florida PREP vs. Control]

Highlights

  • The study's objective was to examine the impact of reemployment programs on public benefits receipt, employment, and earnings outcomes. This profile focuses on the comparison between the Florida Priority Reemployment Planning (PREP) 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 Florida site. Using unemployment insurance (UI) claims data and wage records collected by the state of Florida, 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 Florida PREP program and collecting and exhausting regular and emergency UI benefits. Additionally, the study found a significant positive relationship between the PREP program and employment.  
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Florida Priority Reemployment Planning (PREP) program, and not to other factors. 

Intervention Examined

Florida Priority Reemployment Planning (PREP)

Features of the Intervention

The Florida PREP program was the state implementation of the nationwide Worker Profiling and Reemployment Services (WPRS) program. The WPRS was created in the 1990s to encourage unemployment insurance (UI) recipients to utilize job search services offered by their public employment offices. The program requires UI recipients that are most likely to exhaust benefits to participate in the services offered by their local WPRS program. PREP program participants in Florida were required to visit their public employment offices while receiving UI to learn more about the services offered and receive referrals for additional services.  

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 Florida PREP vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Florida PREP program. To be eligible, participants had to be receiving UI benefits in the state of Florida and be PREP service eligible due to their increased risk of exhausting regular UI benefits. Of the 58,416 eligible UI recipients, 18,510 were assigned to PREP, 23,471 were assigned to REA, and 16,435 were assigned to the control group. Participants who were randomly assigned to the PREP treatment group were referred to a group orientation to receive job search services and referral information in a public employment office. Treatment group participants also received notification letters two weeks into their UI spell about the requirements to attend the PREP orientation to continue receiving UI benefits. Participants randomly assigned to the control group were services eligible; however, they were not required to fulfill the program requirements to continue receiving UI benefits and did not receive notification letters. The majority of the study sample were male and White, had a high school diploma or above, and were white collar workers. Data sources included UI claims data and wage records collected by the state of Florida. 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 Florida PREP program had a significant negative effect on exhausting regular UI benefits and collecting Emergency Unemployment Compensation (EUC).  
  • The study found that participation in the Florida PREP program also had a significant negative effect on the number of weeks and the dollar amount of EUC benefits received.  

Employment  

  • The study found that participation in the PREP program significantly increased employment rates in the fourth quarter following program entry.  

Earnings and wages 

  • The study did not find any significant findings between the PREP program and earnings.  

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 Florida PREP program, and not to other factors. 

Reviewed by CLEAR

May 2024

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