Structural Empirical Evaluation of Job Search Monitoring

Arbeitspapier

We structurally estimate a novel job search model with endogenous job search effort, job quality dispersion, and effort monitoring, taking into account that monitoring effects may be mitigated by on-the-job search and search channel substitution. The data are from a randomized experiment conducted in the Netherlands. They include registers of post-unemployment outcomes like wages and job mobility, and survey data on measures of search behavior. As such we are the first to study monitoring effects on post-unemployment outcomes. We find that the option to climb the job ladder reduces substitution between search channels during unemployment and compensates for adverse long-run effects of monitoring on wages. We use the structural estimates to compare monitoring to counterfactual policies against moral hazard, like re-employment bonuses and changes in the unemployment benefits path. Replacing monitoring by an overall benefits reduction in a way that is neutral to the worker results in slightly smaller effects with lower administrative costs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7740

Classification and Topics

• Classification: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings ; Mobility, Unemployment, and Vacancies: Public Policy ; Job, Occupational, and Intergenerational Mobility; Promotion ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Asymmetric and Private Information; Mechanism Design ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
• Subject: unemployment duration ; search effort ; active labor market policy ; wage ; job duration ; job mobility ; treatment ; search channels ; multi-tasking ; randomized social experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): van den Berg, Gerard J. ; van der Klaauw, Bas
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/90138
• Last update: 10.03.2025, 11:42 AM CET