Boone, Jan; Fredriksson, Peter; Holmlund, Bertil; Ours, … - 2001 - This version: 2 November 2001
This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search effort … among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search … effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions …