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dc.contributor.authorWunsch, Connyen
dc.date.accessioned2010-01-27-
dc.date.accessioned2010-05-14T08:20:34Z-
dc.date.available2010-05-14T08:20:34Z-
dc.date.issued2009-
dc.identifier.urihttp://hdl.handle.net/10419/30521-
dc.description.abstractThis paper studies the role of job search assistance programs in optimal welfare-to-work programs. The analysis is based on a framework, that allows for endogenous choice of benefit types and levels, wage taxes or subsidies, and activation measures such as monitoring and job search assistance for each period of unemployment in a dynamic environment with negative duration dependence in the exit rates to employment and potential depreciation in reemployment wages. We show that the main role of job search assistance is to delay or prevent situations in which it is no longer optimal to incentivize the worker to provide positive search effort. It is used to restore or maintain some minimum exit rate to employment which increases with the cost-effectiveness of job search assistance. We also find that in line with existing policies, these programs should mainly be used at the beginning of unemployment and for short durations. However, contrary to existing schemes, they should be exclusively targeted at unemployed workers with low initial exit rates to employment. For all other workers, they should only be used if they fail to find a job within reasonable time despite high expected initial exit rates.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2890en
dc.subject.jelJ64en
dc.subject.jelJ65en
dc.subject.jelJ68en
dc.subject.jelD82en
dc.subject.jelD86en
dc.subject.ddc330en
dc.subject.keywordjob searchen
dc.subject.keywordoptimal unemployment insuranceen
dc.subject.keywordwelfare-to-work policiesen
dc.subject.keywordrecursive contractsen
dc.titleOptimal use of labor market policies: the role of job search assistance-
dc.typeWorking Paperen
dc.identifier.ppn617261601en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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