Optimal unemployment insurance with monitoring and sanctions

Jan Boone, Peter Fredriksson, Bertil Holmlund and Jan van Ours ()

No 2002:21, Working Paper Series from IFAU - Institute for Labour Market Policy Evaluation

Abstract: This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search effort among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions represents a welfare improvement for reasonable estimates of monitoring costs; this conclusion holds both relative to a system featuring indefinite payments of benefits and a system with a time limit on unemployment benefit receipt.

Keywords: Unemployment insurance; search; sanctions (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ias and nep-ltv
Date: 2002-11-26
View list of references View citations in EconPapers

Published in Economic Journal, 2007, pages 399-421.

Downloads: (external link)
http://www.ifau.se/upload/pdf/se/2002/wp02-21.pdf (application/pdf)

Related works:
Working Paper: Optimal Unemployment Insurance with Monitoring and Sanctions (2001)
Working Paper: Optimal Unemployment Insurance with Monitoring and Sanctions (2001)
Working Paper: Optimal unemployment insurance with monitoring and sanctions (2001)
Working Paper: Optimal Unemployment Insurance with Monitoring and Sanctions (2001)
Working Paper: Optimal Unemployment Insurance with Monitoring and Sanctions (2001)
Journal Article: Optimal Unemployment Insurance with Monitoring and Sanctions (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:ifauwp:2002_021

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Labour Market Policy Evaluation
Address: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
Contact information at EDIRC.
Series data maintained by Margareta Wicklander ().