Structural Empirical Evaluation of Job Search Monitoring

Gerard van den Berg and Bas van der Klaauw

No 7740, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We structurally estimate a novel job search model with endogenous job search effort, job quality dispersion, and effort monitoring, taking into account that monitoring effects may be mitigated by on-the-job search and search channel substitution. The data are from a randomized experiment conducted in the Netherlands. They include registers of post-unemployment outcomes like wages and job mobility, and survey data on measures of search behavior. As such we are the first to study monitoring effects on post-unemployment outcomes. We find that the option to climb the job ladder reduces substitution between search channels during unemployment and compensates for adverse long-run effects of monitoring on wages. We use the structural estimates to compare monitoring to counterfactual policies against moral hazard, like re-employment bonuses and changes in the unemployment benefits path. Replacing monitoring by an overall benefits reduction in a way that is neutral to the worker results in slightly smaller effects with lower administrative costs.

Keywords: search channels; treatment; job mobility; job duration; wage; active labor market policy; search effort; unemployment duration; multi-tasking; randomized social experiment (search for similar items in EconPapers)
JEL-codes: C31 C32 D82 D83 J62 J64 J65 J68 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-11
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: International Economic Review, 2019, 60 (2), 879-903

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Related works:
Journal Article: STRUCTURAL EMPIRICAL EVALUATION OF JOB SEARCH MONITORING (2019)
Working Paper: Structural empirical evaluation of job search monitoring (2015)
Working Paper: Structural Empirical Evaluation of Job Search Monitoring (2013)
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