Why do tougher caseworkers increase employment? The role of programme assignment as a causal mechanism

Previous research found that less accommodating caseworkers are more successful in placing unemployed workers into employment. This paper explores the causal mechanisms behind this result using semiparametric mediation analysis. Analyzing rich linked job seeker-caseworker data for Switzerland, we find that the positive employment effects of less accommodating caseworkers are not driven by a particularly effective mix of labor market programs but, rather, by other dimensions of the counseling process, possibly including threats of sanctions and pressure to accept jobs.