2018
DOI: 10.1086/693868
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Imperfect Monitoring of Job Search: Structural Estimation and Policy Design

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 … Show more

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Cited by 17 publications
(12 citation statements)
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References 49 publications
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“…Hence, its suppression has most likely a negligible impact on job search behavior in particular compared to the withdrawal of the entitlement to the activation allowance. 5 This is consistent with the evidence in Cockx et al (2018) about the impact of the monitoring of job-search effort in Belgium on unemployed people aged between 25 and 30. Waiting period Ineligible for activation allowance Notes: Trajectory of entitlement to the activation allowance for a 23-and 24-year-old job seeker.…”
Section: The Policy Reform As a Natural Experimentssupporting
confidence: 83%
“…Hence, its suppression has most likely a negligible impact on job search behavior in particular compared to the withdrawal of the entitlement to the activation allowance. 5 This is consistent with the evidence in Cockx et al (2018) about the impact of the monitoring of job-search effort in Belgium on unemployed people aged between 25 and 30. Waiting period Ineligible for activation allowance Notes: Trajectory of entitlement to the activation allowance for a 23-and 24-year-old job seeker.…”
Section: The Policy Reform As a Natural Experimentssupporting
confidence: 83%
“…Hence, its suppression has most likely a negligible impact on job search behavior in particular compared to the withdrawal of the entitlement to the activation allowance. 5 This is consistent with the evidence in Cockx et al (2018) about the impact of the monitoring of job-search effort in Belgium on unemployed people aged between 25 and 30. The Belgian government did not only restrict access to the activation allowance for youths starting their waiting period after their 24 th birthday, but also for high school dropouts.…”
Section: The Policy Reform As a Natural Experimentssupporting
confidence: 83%
“…One partial exception is Maibom et al (2017), who show that an intensive counseling treatment in Denmark for newly unemployed workers had effects that continued even after program requirements had been satisfied. Another partial exception is Cockx et al (2017), which found that monitoring activities in the Belgian UI system had small positive effects on participants' job-search behavior. Importantly, none of the European studies determined if programs had positive impacts on earnings, a key indication of whether the job counseling mandated by these programs led to improved labor market outcomes.…”
Section: Prior Researchmentioning
confidence: 99%