The paper presents a model that allows a unified analysis of sickness absence and search unemployment. Sickness appears … benefits affect individual decisions on absence and search and the implications for employment, unemployment and … as random shocks to individual utility functions, interacts with individual search and labor supply decisions and …

Existing unemployment insurance systems in many OECD countries involve a ceiling on insurable earnings. The result is … decrease as the level of earnings rises. The framework is a search equilibrium model where wages are determined by Nash … bargaining between firms and workers, job search intensity is endogenous and workers are heterogeneous. The analysis suggests …

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 …

This paper provides a review of the recent literature on how incentives in unemployment insurance (UI) can be improved … that the case for imposing a penalty on less active job search is fairly solid. A growing number of empirical studies …

This paper analyses crucial design features of unemployment insurance (UI) policies. We examine three different means … workfare. To that end we develop a quantitative model of equilibrium unemployment. The model features worker heterogeneity … monitoring and sanctions restores search incentives most effectively, since it brings additional incentives to search actively so …

This paper provides a review of the recent literature on how incentives in unemployment insurance (UI) can be improved … that the case for imposing a penalty on less active job search is fairly solid. A growing number of empirical studies …

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 …

We examine the relationship between unemployment benefits and unemployment using Swedish regional data. To estimate the … effect of an increase in unemployment insurance (UI) on unemployment we exploit the ceiling on UI benefits. The benefit … find fairly robust evidence suggesting that the actual generosity of UI does matter for regional unemployment. Increases in …

This study evaluates the long-term cost of unemployment in Finland by focusing on the deep recession period of the … early 1990s. The number of plant closures increased sharply during the recession and the unemployment rate rose by more than … 13 percentage points. In the analysis, prime working-age men who face unemployment due to plant closure are matched to …

Unemployment insurance systems include monitoring of unemployed workers and punitive sanctions if job search … theoretical job search model with monitoring of job offer rejection versus monitoring of job search effort. The observation window … human capital losses. Monitoring offer rejections is less effective than monitoring search effort. …