Arbeitspapier

Engineering an incentive to search for work: A comparison groups approach

to connected objects

Social comparisons are important in the employment sphere. A "culture of unemployment" may evolve and prevail because it is optimal for an individual to remain unemployed when other unemployed individuals constitute his main reference group. We advance the idea that by making the receipt of unemployment benefits conditional on engagement in an incentive-enhancing activity (for example, work under state-sponsored employment schemes or participation in work-site-based training programs), a government can engineer a revision of the reference groups of an unemployed individual in order to induce him to seek work.

Language: Englisch

Bibliographic citation: Series: University of Tübingen Working Papers in Economics and Finance ; No. 80

Classification: Wirtschaft
Microeconomic Policy: Formulation, Implementation, and Evaluation
Welfare Economics: Other
National Government Expenditures and Welfare Programs
Time Allocation and Labor Supply
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings

Subject: Unemployment benefits
Social comparisons
Relative deprivation

Event: Geistige Schöpfung

(who): Stark, Oded
Jakubek, Marcin
Kobus, Martyna

Event: Veröffentlichung

(who): University of Tübingen, Faculty of Economics and Social Sciences

(where): Tübingen

(when): 2015

Handle: http://hdl.handle.net/10419/110978

Last update: 10.03.2025, 11:42 AM CET

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Object type

Arbeitspapier

Associated

Stark, Oded
Jakubek, Marcin
Kobus, Martyna
University of Tübingen, Faculty of Economics and Social Sciences

Time of origin

2015

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