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IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
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http://hdl.handle.net/10419/20948
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| Title: | | Modeling Financial Incentives to Get Unemployed Back to Work  |
| 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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| dp108.pdf | | 420.92 kB | Adobe PDF |
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