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

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 [Nevada REA/RES 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 Nevada Reemployment and Eligibility Assessment/Services (REA/RES) 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 Nevada site. Using unemployment insurance (UI) claims data and wage records collected by the state of Nevada, 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 Nevada REA/RES program and collecting and exhausting regular and emergency UI benefits. Additionally, the study found significant positive relationships between the REA/RES program and employment and earnings.  
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Nevada Reemployment and Eligibility Assessment/Services (REA/RES) program, and not to other factors. 

Intervention Examined

Reemployment and Eligibility Assessment/Services (REA/RES)

Features of the Intervention

The Nevada REA/RES program was a combination of the Reemployment and Eligibility Assessment framework and the Worker Profiling and Reemployment Services (WPRS) program. The Nevada REA/RES 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 and if eligible, require job counseling 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 Nevada REA/RES vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Nevada REA/RES program. To be eligible, participants had to be receiving UI benefits in the state of Nevada and be REA/RES service eligible due to increased risk of exhausting their regular UI benefits. Of the 21,898 eligible UI recipients, 3,496 were assigned to REA/RES and 18,402 were assigned to the control group. Participants who were randomly assigned to the REA/RES treatment group were required to complete the in-person eligibility review and received notification letters of the requirement when they collected their first weekly UI payment. If participants were deemed eligible, they were required to receive job counseling services from program staff to continue receiving UI benefits. Participants randomly assigned to the control group were REA/RES service eligible; however, they were not required to fulfill the program requirements to continue receiving UI benefits. The majority of the study sample were male and had a high school diploma or above. Data sources included UI claims data and wage records collected by the state of Nevada. 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 Nevada REA/RES program had a significant negative effect on exhausting regular UI benefits, the number of weeks regular UI benefits were received, and the dollar amount of regular UI received.  
  • The study found that participation in the Nevada REA/RES program also had a significant negative effect on collecting Emergency Unemployment Compensation (EUC), exhausting EUC benefits, the number of weeks EUC benefits were received, and the dollar amount of EUC received.  

Employment  

  • The study found that participation in the Nevada REA/RES program significantly increased employment rates in the four quarters following program entry.  

Earnings and wages  

  • The study found that participation in the Nevada REA/RES program significantly increased earnings in the four 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 Nevada Reemployment and Eligibility Assessment/Services (REA/RES) program, and not to other factors. 

Reviewed by CLEAR

May 2024

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