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Title:Modeling Financial Incentives to Get Unemployed Back to Work PDF Logo
Authors:Boone, Jan
van Ours, Jan C.
Issue Date:2000
Series/Report no.:IZA Discussion paper series 108
Abstract:We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job search guidelines - affect unemployment. In our analysis we find that not only micro effects concerning the behavior of individual unemployed workers are relevant, but also macro-spillover effects from the additional creation of vacancies, which originates from the increased effectiveness of labor supply. We advocate that for a given loss in welfare for the unemployed benefit sanctions are more effective in reducing unemployment than an across the board reduction in the replacement rate.
Subjects:Unemployment benefits
financial incentives
sanctions
JEL:J68
J65
H55
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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