Is there a rationale to contact the unemployed right from the start? Evidence from a natural field experiment

Active Labour Market Policies (ALMPs) often exclusively target towards the long-term unemployed. Although it might be more efficient to intervene earlier in order to prevent long-term unemployment rather than to cure it, the climate of austerity in Eurozone countries is spreading a tendency to further reduce the basic counselling for those who become unemployed. This study investigates the impact on employment chances of a relatively light and inexpensive intervention. In a field experiment in a public employment office in Flanders, a random selection of clients were invited for a mandatory information session in the first month of the unemployment spell, while the control group were invited after four months of unemployment. Although the average intention-to-treat effect we find is not significant, the early intervention appears to be very beneficial for those with low education.