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While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a …
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We develop and estimate a non-stationary job search model to evaluate a scheme that monitors job search effort and sanctions insured unemployed whose effort is deemed insufficient. The model reveals that such schemes provide incentives to the unemployed to front-load search effort prior to...
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keep control if they - irrationally - believe that they can increase the probability of getting their preferred task by … keeping control. We thus document that illusion of control exists in a controlled environment with monetary incentives, and … that illusion of control might affect people's pursuit of authority. …
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This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search e¤ort 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...
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