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Improving Incentives in Unemployment Insurance: A Review of Recent Research

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Peter Fredriksson
Bertil Holmlund

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Abstract

This paper provides a review of the recent literature on how incentives in unemployment insurance can be improved. We are particularly concerned with three instruments, i.e. the duration of benefit payments "or more generally the time sequencing of benefits", monitoring in conjunction with sanctions, and workfare. Our reading of the theoretical literature is that the case for imposing a penalty on less active job search is fairly solid. A growing number of empirical studies, including randomized experiments, are in line with this conclusion. Copyright Blackwell Publishers Ltd, 2006.

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Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 20 (2006)
Issue (Month): 3 (07)
Pages: 357-386
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Handle: RePEc:bla:jecsur:v:20:y:2006:i:3:p:357-386

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  27. Orley Ashenfelter & David Ashmore & Olivier Deschenes, 1999. "Do Unemployment Insurance Recipients Actively Seek Work? Randomized Trials in Four U.S. States," NBER Working Papers 6982, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  28. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 1999. "Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System," UWO Department of Economics Working Papers 9913, University of Western Ontario, Department of Economics. [Downloadable!]
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  31. Burdett, Kenneth, 1979. "Unemployment Insurance Payments as a Search Subsidy: A Theoretical Analysis," Economic Inquiry, Oxford University Press, vol. 17(3), pages 333-43, July.
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