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Imperfect Monitoring of job search : structural estimation and policy design

Journal Contribution - Journal Article

We build and estimate a non-stationary structural job search model that incorporates the mainstylized features of a typical job search monitoring scheme in unemployment insurance (UI) andacknowledges 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 suffciently 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.
Journal: Journal of Labor Economics
ISSN: 0734-306X
Issue: 1
Volume: 36
Pages: 75 - 120
Publication year:2018