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Mandatory activation reduces job application costs from $\gamma_0 = 0.202$ to $\gamma_1 = 0.114$, but completely eliminates non-market time value $h = 0.013$ per month (equivalent to 1.3% of monthly productivity or ~2% of unemployment benefits).
At baseline French market tightness ($\theta = 0.42$), displacement externalities reduce net aggregate job creation to 68%–73% of the measured firm-level treatment impact ($ED(\sigma)/\sigma AB \approx 0.68\text{--}0.73$), demonstrating that equilibrium spillover losses offset roughly 27%–32% of firm-level hiring gains.
At a labor market tightness of 0.42, the ratio of aggregate net employment created per treated firm to the measured direct effect is estimated at 0.68, demonstrating that indirect negative displacement accounts for roughly 32% of direct firm-level employment gains [24, 25].
Business process outsourcing employment increased by 4.6 percentage points (p < 0.01) with no statistically significant decline in agricultural labor (-0.008, p > 0.10) or non-BPO paid work (-0.012, p > 0.10), proving total female labor supply expanded from previously inactive populations.
Average indirect spillover effects on untreated neighbors were statistically zero across employment (-4.6 percentage points, p > 0.10) and earnings (-41.1 ETB, p > 0.10), proving that search interventions at this scale do not displace non-treated youth in integrated urban labor markets.