Modeling Financial Incentives to Get the Unemployed Back to Work

We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job search guidelines - affect unemployment. We find that benefit sanctions are more effective in reducing unemployment than an across-the-board reduction in the replacement rate, for a given loss in welfare for the unemployed. We decompose the effects of a sanction system into micro, crowding-out, spillover, and tax effects.

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Year of publication:	2006
Authors:	Boone, Jan ; Ours, Jan C. van
Published in:	Journal of Institutional and Theoretical Economics (JITE). - ISSN 0932-4569. - Vol. 162.2006, 2, p. 227-252

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Extent:	text/html
Type of publication:	Article
Classification:	H55 - Social Security and Public Pensions ; J65 - Unemployment Insurance; Severance Pay; Plant Closings ; J68 - Public Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005582007