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Imperfect Monitoring of Job Search: Structural Estimation and Policy Design

Bart Cockx (), Muriel Dejemeppe (), Andrey Launov () and Bruno Van der Linden ()

No 10487, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We build and estimate a non-stationary structural job search model that incorporates the main stylized features of a typical job search monitoring scheme in unemployment insurance (UI) and acknowledges that search effort and requirements are measured imperfectly. Based on Belgian data, monitoring is found to affect search behavior only weakly, because (i) assessments were scheduled late and infrequently; (ii) the monitoring technology was not sufficiently precise, (iii) lenient Belgian UI results in caseloads that are less responsive to incentives than elsewhere. Simulations show how changing the aforementioned design features can enhance effectiveness and that precise monitoring is key in this.

Keywords: unemployment benefits; non-stationary job search; sanctions; monitoring; structural estimation (search for similar items in EconPapers)
JEL-codes: J64 J68 C41 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2017-01
New Economics Papers: this item is included in nep-dge
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Published in: Journal of Labor Economics, 2018, 36 (1), 75-120 [Online Access]

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Journal Article: Imperfect Monitoring of Job Search: Structural Estimation and Policy Design (2018) Downloads
Working Paper: Imperfect Monitoring of Job Search: Structural Estimation and Policy Design (2017) Downloads
Working Paper: Imperfect Monitoring of Job Search: Structural Estimation and Policy Design (2017) Downloads
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