Imperfect Monitoring of Job Search: Structural Estimation and Policy Design

Bart Cockx, Muriel Dejemeppe, Andrey Launov (a.launov@kent.ac.uk) 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: sanctions; non-stationary job search; unemployment benefits; monitoring; structural estimation (search for similar items in EconPapers)
JEL-codes: C41 J64 J68 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2017-01
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Journal of Labor Economics , 2018, 36 (1), 75-120

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