This paper analyses the integration of active labour market policies for two groups of unemployed from a theoretical perspective. In general a model with only one type of agent performs better than a model with two types of agents. If there are two types of agents part of the effort of one agent...

In this paper, we use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1st 2004, required the...