Modelling Financial Incentives To Get Unemployed Back To Work

Jan van Ours and Jan Boone

No 2361, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 behaviour of individual unemployed workers are relevant, but also macro-spillover effects from the additional creation of vacancies, which originates from the increased effectiveness of labour 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.

Keywords: Financial incentives; Sanctions; Unemployment benefits (search for similar items in EconPapers)
JEL-codes: H55 J65 J68 (search for similar items in EconPapers)
Date: 2000-01
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cepr.org/publications/DP2361 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Modeling Financial Incentives to Get the Unemployed Back to Work (2006)
Working Paper: Modeling Financial Incentives to Get Unemployed Back to Work (2000)
Working Paper: Modeling Financial Incentives to Get Unemployed Back to Work (2000)
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: https://EconPapers.repec.org/RePEc:cpr:ceprdp:2361

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2361

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().