preferences for leisure. The analysis suggests that a system with monitoring and sanctions restores search incentives most … of improving the efficiency of UI: the duration of benefit payments, monitoring in conjunction with sanctions, and … effectively, since it brings additional incentives to search actively so as to avoid the sanction. Therefore, the UI provider can …

effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions …This Paper analyses 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 …

appropriate level of job search activity, and by imposing sanctions for infractions. Empirical studies consistently show that job … search monitoring and benefit sanctions reduce unemployment duration and increase job entry in the short term. There is some …Unemployment benefits often reduce incentives to search for a job. Policymakers have responded to this behaviour by …

We construct a multi-sector search and matching model where the unemployed receives idiosyncratic productivity shocks … that make working in certain sectors more productive than in the others. Agents must decide which sector to search in and … additional risk: low future wages if mobility costs preclude search in the appropriate sector. This introduces a new role for …