Structural Empirical Evaluation of Job Search Monitoring

25 Pages Posted: 22 May 2019

See all articles by Gerard J. van den Berg

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Bas van der Klaauw

VU University Amsterdam

Multiple version iconThere are 3 versions of this paper

Date Written: May 2019

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.

Suggested Citation

van den Berg, Gerard J. and van der Klaauw, Bas, Structural Empirical Evaluation of Job Search Monitoring (May 2019). International Economic Review, Vol. 60, Issue 2, pp. 879-903, 2019. Available at SSRN: https://ssrn.com/abstract=3391449 or http://dx.doi.org/10.1111/iere.12376

Gerard J. Van den Berg (Contact Author)

VU University Amsterdam - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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Tinbergen Institute

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Bas Van der Klaauw

VU University Amsterdam

De Boelelaan 1105
Amsterdam, ND 1081 HV
Netherlands

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