Monitoring job offer decisions, punishments, exit to work, and job quality

Arbeitspapier

Unemployment insurance systems include monitoring of unemployed workers and punitive sanctions if job search requirements are violated. We analyze the effect of sanctions on the ensuing job quality, notably on wage rates and hours worked, and we examine how often a sanction leads to a lower occupational level. The data cover the Swedish population over 1999-2004. We estimate duration models dealing with selection on unobservables. We use weighted exogenous sampling maximum likelihood to deal with the fact the data register is large whereas observed punishments are rare. We also develop a theoretical job search model with monitoring of job offer rejection vis-a-vis monitoring of job search effort. The observation window includes a policy change in which the punishment severity was reduced. We find that the hourly wage and the number of hours are on average lower after a sanction, and that individuals move more often to a lower occupational level, incurring human capital losses. Monitoring offer rejections is less effective than monitoring search effort.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4325

Classification and Topics

• Classification: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Duration Analysis; Optimal Timing Strategies ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Wage Level and Structure; Wage Differentials ; Professional Labor Markets; Occupational Licensing ; Unemployment Insurance; Severance Pay; Plant Closings ; Job, Occupational, and Intergenerational Mobility; Promotion
• Subject: Unemployment ; duration ; sanction ; wage ; hours worked ; weighted exogenous sampling maximum likelihood ; case worker ; job offer ; offer rejection ; search effort ; Arbeitsmarktpolitik ; Arbeitsplatzsuchmodell ; Anspruchslohn ; Arbeitsverhältnis ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): van den Berg, Gerard J. ; Vikström, Johan
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/36340
• URN: urn:nbn:de:101:1-20090825646
• Last update: 10.03.2025, 11:45 AM CET