The Interplay between Individuals' Expectations, Active Labour Market Policies, Job Search Behaviour and Labour Market Outcomes

The aim of this research project is to provide a more profound understanding of the job search process considering the interplay with job seekers expectations and consequences for realised labour market outcomes. The project incorporates subjective beliefs about future ALMP participation in a job search framework and tests the derived hypothesis by exploiting a unique combination of survey and administrative data for a sample of fresh entries into unemployment in Germany. The findings are expected to give new insights into the job search process in general, as well as into the participation in ALMP programmes and their long-term effects, thus helping policy makers to increase the efficiency when allocating ALMP programmes and stimulate early exits from unemployment by exploiting anticipation effects.