COCKX, Bart; DEJEMEPPE, Muriel; LAUNOV, Andrey; LINDEN, … - Institut de Recherche Économique et Sociale (IRES), … - 2011
We develop and estimate a non-stationary job search model to evaluate as 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 monitoring. This causes the job finding rate to increase above the post sanction …