Optimal Unemployment Insurance with Monitoring and Sanctions

Arbeitspapier

This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search e¤ort 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 represents a welfare improvement for reasonable estimates of monitoring costs; this conclusion holds both relative to a system featuring indefinite payments of benefits and a system with a time limit on unemployment benefit receipt. The optimal sanction rates implied by our calibrated model are much higher than the sanction rates typically observed in European labor markets.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 616

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: unemployment insurance ; search ; sanctions

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Boone, Jan ; Fredriksson, Peter ; Holmlund, Bertil ; van Ours, Jan C.
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2001

Weitere Informationen

• Handle: http://hdl.handle.net/10419/75901
• Letzte Aktualisierung: 27.03.2025, 07:39 MEZ