Testing a financial incentive to promote re-employment among displaced workers : the Canadian Earning Supplement Project (ESP)
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ArticlePublisher: 2001Journal of Policy Analysis and Management 20, 3, p. 505-523Abstract: This article presents findings from a randomized experiment conducted in four Canadian provinces to measure the effects of a generous financial incentive that was designed to promote rapid re-employment among worker who were displaced from their jobs by changing economic conditions. The incentive tested was an earnings supplement which, for as long as 2 years and as much as $250 weekly, would replace 75 percent of the earning loss incurred by displaced workers who took a new lower-paying full-time job within six months of receiving a supplement offer. Findings from the experiment indicate that although persons offered the supplement understood its terms and conditions, only 2 out of 10 actually received supplement payments. Furthermore, the supplement offer had little effect on job-search behavior, employment prospects, or receipt of unemployment insurance. Nevertheless, persons who received supplement payments, benefited from them substantially. On average, they received payments for 64 weeks, totalingAbstract: 8.705
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
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| Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
This article presents findings from a randomized experiment conducted in four Canadian provinces to measure the effects of a generous financial incentive that was designed to promote rapid re-employment among worker who were displaced from their jobs by changing economic conditions. The incentive tested was an earnings supplement which, for as long as 2 years and as much as $250 weekly, would replace 75 percent of the earning loss incurred by displaced workers who took a new lower-paying full-time job within six months of receiving a supplement offer. Findings from the experiment indicate that although persons offered the supplement understood its terms and conditions, only 2 out of 10 actually received supplement payments. Furthermore, the supplement offer had little effect on job-search behavior, employment prospects, or receipt of unemployment insurance. Nevertheless, persons who received supplement payments, benefited from them substantially. On average, they received payments for 64 weeks, totaling
8.705
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