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http://hdl.handle.net/10419/58994
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| Title: | | Monitoring, sanctions and front-loading of job search in a non-stationary model  |
| Authors: | | Cockx, Bart Dejemeppe, Muriel Launov, Andrey Van der Linden, Bruno |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6181 |
| Abstract: | | We develop and estimate a non-stationary job search model to evaluate a scheme that monitors job search effort and sanctions insured unemployed whose effort is deemed insufficient. The model reveals that such schemes provide incentives to the unemployed to front-load search effort prior to monitoring. This causes the job finding rate to increase above the post sanction level. After validating the model both internally and externally, we conclude that the scheme is effective in raising the job finding rate with minor wage losses. A basic cost-benefit analysis demonstrates that welfare losses for the unemployed are compensated by net efficiency gains for public authorities and society. |
| Subjects: | | monitoring sanctions non-stationary job search unemployment benefits structural estimation |
| JEL: | | J64 J68 C41 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-201201103126 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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