Structural empirical evaluation of job search monitoring

Gerard J. van den Berg*, Bas van der Klaauw

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

71 Downloads (Pure)

Abstract

To evaluate search effort monitoring of unemployed workers, it is important to take account of post-unemployment wages and job-to-job mobility. We structurally estimate a model with search channels, using a controlled trial in which monitoring is randomized. The data include registers and survey data on search behavior. We find that the opportunity to move to better-paid jobs in employment reduces the extent to which monitoring induces substitution toward formal search channels in unemployment. Job mobility compensates for adverse long-run effects of monitoring on wages. We examine counterfactual policies against moral hazard, like reemployment bonuses and changes of the benefits path.

Original languageEnglish
Pages (from-to)879-903
Number of pages25
JournalInternational Economic Review
Volume60
Issue number2
Early online date18 Oct 2018
DOIs
Publication statusPublished - May 2019

Fingerprint

Dive into the research topics of 'Structural empirical evaluation of job search monitoring'. Together they form a unique fingerprint.

Cite this