Long-Term Match Quality and Retention Stability
RCTClinical Trial
Lowering recruitment and candidate screening costs could potentially lead to rushed, sub-optimal employment matches that terminate rapidly during initial trial or probation periods.
Picture this
Think of a professional matchmaking service. If a service introduces people quickly, there is a fear that couples will break up after a week. However, if the service pre-screens compatibility effectively, the couples stay together for years, proving the speed of introduction did not compromise relationship durability.
What the evidence says
Treatment increased permanent contract hires resulting in at least 12 consecutive months off the unemployment register by 14% (+0.046 hires per firm off a control mean of 0.33, p < 0.01), demonstrating a 1-to-1 persistence with total permanent hiring gains.
- Who was studied
- N = 7,438 small and medium-sized enterprise establishments in France.
- How
- Stratified Randomized Controlled Trial tracking worker retention off public unemployment registers over a 12-month post-hire window.
What to do
Measure active labor policy success using 12-month off-register employment persistence rather than initial short-term contract signing flows.
From the source
"We identify a significant impact centered on registered jobseekers hired in permanent contracts, significant at the 1% level. This represents a 14% increase in these 'quality' hires off the control group mean of 0.33."
Are_Active_Labor_Market_Policies_Directed_at_Firms_Effective_Evidence.pdf