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Do reemployment programs for the unemployed work for youth? Evidence from the Great Recession in the United States [Florida REA 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 REA 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 Reemployment and Eligibility Assessment (REA) 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 significant negative relationships between participation in the Florida REA program and collecting emergency UI benefits and the amount of emergency UI benefits collected. 
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Florida REA program, and not to other factors. 

Intervention Examined

The Reemployment and Eligibility Assessment (REA) Initiative in Florida

Features of the Intervention

The Florida REA program was an implementation of the larger Reemployment and Eligibility Assessment services program. The REA program was created to encourage reemployment and reduce burden imposed on UI programs through in-person eligibility reviews to ensure that recipients were eligible for benefits. REA program participants in Florida were required to visit their public employment offices to complete in-person eligibility reviews. Participants were required to complete the review and received notification letters of the requirement when they collected their second weekly UI payment. If REA participants did not attend a meeting, they were disqualified from receiving UI 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 REA vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Florida REA program. To be eligible, participants had to be receiving UI benefits in the state of Florida, eligible for REA services, and under the age of 25. Of the 6,524 eligible UI recipients, 40% were assigned to REA, 32% were assigned to PREP, and 28% were assigned to the control group. Participants who were randomly assigned to the REA treatment group received notification letters informing them of the requirement to visit their public employment offices to complete an in-person eligibility review. Participants randomly assigned to the control group were eligible for REA services; however, they were not required to fulfill the program requirements to continue receiving UI benefits and did not receive notification letters. The majority of the sample 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 REA program had a significant negative effect on collecting, exhausting, and the overall amount of Emergency Unemployment Compensation (EUC) benefits received.  

Employment

  •  The study did not find any significant effects between the REA program and employment rates in the four quarters following program entry. 

Earnings and wages

  • The study did not find any significant effects between the REA program and 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 Florida Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Reviewed by CLEAR

May 2024

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