The impact of periodic interviews on unemployment duration: Evidence from the 2017 Finnish reform

Abstract

In 2017, a Finnish policy reform intensified the Public Employment Services' practice of periodically interviewing unemployed jobseekers. This study used high-quality administrative data to analyse the effect of interviews on unemployment duration. We used a difference-in-differences approach that exploited regional variations in treatment intensity. Our results show that a 10 percentage point increase in interview probability increased the monthly hazard rate of employment by 3.1 per cent, with the effect being strongest among jobseekers aged 25–34 and jobseekers with a low education level. Also, our results demonstrate a strong effect on participation in active labour market programmes.