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The Threat of Monitoring Job Search. A Discontinuity Design

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  • Bart Cockx
  • Muriel Dejemeppe

Abstract

Since July 2004 the job search effort of long-term unemployed benefit claimants is monitored in Belgium. We exploit the discontinuity in the treatment assignment at the age of 30 to evaluate the effect of a notification sent at least 8 months before job search is verified. The threat of monitoring increases transitions to employment, but of lower quality. In the less prosperous region, Wallonia, the impact is smaller, despite of the presence of specific counseling for the notified workers, and more heterogeneous. Moreover, in this region, the threat induces women to substitute sickness for unemployment benefits.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3267.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3267

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Keywords: evaluation; monitoring; job-search; threat effect; regression-discontinuity; grouped data;

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References

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  1. David Card & Raj Chetty & Andrea Weber, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," NBER Working Papers 12893, National Bureau of Economic Research, Inc.
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  3. Boone, J. & Ours, J.C. van, 2009. "Why is There a Spike in the Job Finding Rate at Benefit Exhaustion?," Discussion Paper, Tilburg University, Center for Economic Research 2009-84, Tilburg University, Center for Economic Research.
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  6. Jan Boone & Peter Fredriksson & Bertil Holmlund & Jan C. van Ours, 2007. "Optimal Unemployment Insurance with Monitoring and Sanctions," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 117(518), pages 399-421, 03.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The impact of job search monitoring
    by Economic Logician in Economic Logic on 2011-03-21 14:02:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Cockx, Bart & Dejemeppe, Muriel & Launov, Andrey & Van der Linden, Bruno, 2011. "Monitoring, Sanctions and Front-Loading of Job Search in a Non-Stationary Model," IZA Discussion Papers 6181, Institute for the Study of Labor (IZA).
  2. Hullegie, P.G.J., 2012. "Essays on health and labor economics," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5637283, Tilburg University.
  3. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, Elsevier, vol. 19(5), pages 729-737.

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  1. Economic Logic blog

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