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effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions …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 …
Persistent link: https://www.econbiz.de/10005763574
punishment in a social dilemma. Emotional reaction to free-riding incites individuals to apply sanctions when they are available …. The application of sanctions activates a "virtuous emotional circle" that accompanies cooperation. Emotionally aroused …
Persistent link: https://www.econbiz.de/10008876559
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 monitoring. This causes the job finding rate to increase above the post sanction …
Persistent link: https://www.econbiz.de/10009386635
Experimental studies of social dilemmas have shown that while the existence of a sanctioning institution improves cooperation within groups, it also has a detrimental impact on group earnings in the short run. Could the introduction of pre-play threats to punish have enough of a beneficial...
Persistent link: https://www.econbiz.de/10008678693
We investigate the impact of various audit schemes on the future provision of public goods, when contributing less than the average of the group is sanctioned exogenously and the probability of an audit is unknown. We study how individuals update their beliefs about the probability of being...
Persistent link: https://www.econbiz.de/10010739419
This paper investigates the effect of sanctions of unemployment insurance benefits on the exit rate from unemployment … for a sample of Danish unemployed. According to the findings are that even moderate sanctions have rather large effects … a rather large sample to elaborate on the basic findings. It is shown that harder sanctions have a larger effect, that …
Persistent link: https://www.econbiz.de/10005763815
We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job … search guidelines - affect unemployment. In our analysis we find that not only micro effects concerning the behavior of … benefit sanctions are more effective in reducing unemployment than an across the board reduction in the replacement rate. …
Persistent link: https://www.econbiz.de/10005566674
This paper presents the results of an experimental study on unemployment benefit sanctions. The experimental set …-up allows us to distinguish between the effect of benefit sanctions once they are imposed (the ex post effect) and the effect …. Moreover, the ex ante effect turns out to be substantial and bigger than the ex post effect. Benefit sanctions stimulate the …
Persistent link: https://www.econbiz.de/10005703149
Centralized sanctioning institutions are of utmost importance for overcoming free-riding tendencies and enforcing outcomes that maximize group welfare in social dilemma situations. However, little is known about how such institutions come into existence. In this paper we investigate, both...
Persistent link: https://www.econbiz.de/10005703775
This paper provides a new perspective by classifying active labor market programs (ALMPs) depending on their main objectives and their relevance and cost-effectiveness during normal times, during a crisis, and during recovery. We distinguish ALMPs that provide: (i) incentives for retaining...
Persistent link: https://www.econbiz.de/10011207666