Structural Empirical Analysis of Vacancy Referrals with Imperfect Monitoring and the Strategic Use of Sickness Absence

Gerard J. van den Berg, Hanno Foerster and Arne Uhlendorf
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Gerard J. van den Berg: University of Groningen, University Medical Center Groningen, IFAU Uppsala, ZEW, IZA, CEPR
Arne Uhlendorf: CNRS and CREST, IAB Nuremberg, DIW, IZA
Authors registered in the RePEc Author Service: Arne Uhlendorff

No 2023-10, Working Papers from Center for Research in Economics and Statistics

Abstract: This paper provides a structural analysis of the role of job vacancy referrals (VRs) by public employment agencies in the job search behavior of unemployed individuals, incorporating institutional features of the monitoring of search behavior by the agencies. Notably, rejections of VRs may lead to sanctions (temporary benefits reductions) while workers may report sick to avoid those. We estimate models using German administrative data from social security records linked with caseworker recorded data on VRs, sick reporting and sanctions. The analysis highlights the influence of aspects of the health care system on unemployment durations. We estimate that for around 25% of unemployed workers, removing the channel that enables strategic sick reporting reduces the mean unemployment duration by 4 days.

Keywords: unemployment; wage; sanctions; moral hazard; sickness absence; physician; structural estimation; counterfactual policy evaluation; unemployment duration (search for similar items in EconPapers)
JEL-codes: C51 C54 J64 J65 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2023-09-17
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lab
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http://crest.science/RePEc/wpstorage/2023-10.pdf CREST working paper version (application/pdf)

Related works:
Working Paper: Structural Empirical Analysis of Vacancy Referrals with Imperfect Monitoring and the Strategic Use of Sickness Absence (2023)
Working Paper: Structural Empirical Analysis of Vacancy Referrals With Imperfect Monitoring and the Strategic Use of Sickness Absence (2019)
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