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Do reemployment programs for the unemployed work for youth? Evidence from the Great Recession in the United States [Florida PREP vs. Control] (Michaelides et al., 2020)

Review Guidelines

Absence of conflict of interest. 

Citation

Michaelides, M., Mueser, P. R., & Smith, J. A. (2020). Do reemployment programs for the unemployed work for youth? Evidence from the great recession in the United States. IZA Discussion Papers, No. 13324. [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 for youth. 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 a significant negative effect between participation in the Florida PREP program and exhausting emergency UI benefits.  
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Florida PREP program, and not to other factors. 

Intervention Examined

Florida Priority Reemployment Planning (PREP)

Features of the Intervention

The Florida PREP program was an 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. As part of the Florida PREP program, participants were required to visit their public employment offices while receiving UI to learn more about the services offered and receive referrals for additional services to continue receiving benefits. 

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 were required to be under the age of 25, receiving UI benefits in the state of Florida, and PREP service eligible due to their increased risk of exhausting regular UI benefits. Of the 6,524 eligible UI recipients, 32% were assigned to PREP, 40% were assigned to REA, and 28% 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. PREP participants also received notification letters two weeks into their UI receipt about the requirements to attend the PREP orientation; however, participants were not penalized if they did not attend the meeting. Participants randomly assigned to the control group were eligible to receive services; however, they were not required to fulfill the program requirements to continue receiving UI benefits and did not receive notification letters. Of the participants in the sample, the majority 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 Emergency Unemployment Compensation (EUC) benefits.  

Employment

  • The study did not find any significant effects of the Florida PREP program on employment.  

Earnings and wages

  • The study did not find any significant effects of the Florida PREP program on participants’ 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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