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Graversen & Van Ours (2008) find that the threat effect and job search assistance are most effective.
And the disappearance of unions from the private sector has radically diminished the threat effect, meaning that unions don't raise the wages of non-union workers.
"It will have very little anticipatory threat effect to encourage job seeking; participants are likely to reduce efforts to find a job, because they are working 30 hours a week for the month; and placements will not offer useful skills.
Then, too, even people who didn't belong to unions often reaped some benefit from them, because of what economists call the "threat effect": in heavily unionized industries, non-union employers had to pay their workers better in order to fend off unionization.
Threat effect.
114Effectively this is a negative threat effect.
Similar(35)
This programme might therefore have threat effects, a topic which has not yet been investigated.
Additional evidence for threat effects is provided by Graversen & Van Ours (2011).
Employer intermediation service → Strengthen LM attachment, Counseling, monitoring Threat Effects combined with sanctions Also displacement, wage and churning effects.
Safety-net role in crises Activation and workfare Make unemployment more costly Threat effects and wage effects.
→ Increase of LM flows, reduction of persistence, shorter unemployment durations Sanctions Make unemployment more costly Threat effects and wage effects.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com