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The effect of monitoring unemployment insurance recipients on unemployment duration: evidence from a field experiment

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  • John Micklewright

    ()
    (Depatment of Quantitative Social Science - Institute of Education, University of London.)

  • Gyula Nagy

    (Department of Human Resources, Corvinus University of Budapest)

Abstract

Programme administration is a relatively neglected issue in the analysis of disincentive effects of unemployment benefit systems. We investigate this issue with a field experiment in Hungary involving random assignment of benefit claimants to treatment and control groups. Treatment increases the monitoring of claims - claimants make more frequent visits to the employment office and face questioning about their search behaviour. Treatment has quite a large effect on durations on benefit of women aged 30 and over, while we find no effect for younger women or men.

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Bibliographic Info

Paper provided by Department of Quantitative Social Science - Institute of Education, University of London in its series DoQSS Working Papers with number 09-02.

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Length: 29 pages
Date of creation: 26 Nov 2009
Date of revision:
Publication status: forthcoming in Labour Economics
Handle: RePEc:qss:dqsswp:0902

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Keywords: field experiment; monitoring; job search; unemployment insurance; Hungary;

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References

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  1. Fredriksson, Peter & Holmlund, Bertil, 2003. "Improving incentives in unemployment insurance: A review of recent research," Working Paper Series 2003:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. van den Berg, Gerard J & van der Klaauw, Bas, 2001. "Counselling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment," CEPR Discussion Papers 2986, C.E.P.R. Discussion Papers.
  4. Micklewright, John & Nagy, Gyula, 2008. "Job Search Monitoring and Unemployment Duration: Evidence from a Randomised Control Trial," CEPR Discussion Papers 6711, C.E.P.R. Discussion Papers.
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  12. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
  13. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
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  16. Bergemann, Annette & van den Berg, Gerard, 2007. "Active labor market policy effects for women in Europe - a survey," Working Paper Series 2007:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  17. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  18. Dolton, Peter & O'Neill, Donal, 1996. "Unemployment Duration and the Restart Effect: Some Experimental Evidence," Economic Journal, Royal Economic Society, vol. 106(435), pages 387-400, March.
  19. Daniel H. Klepinger & Terry R. Johnson & Jutta M. Joesch, 2002. "Effects of unemployment insurance work-search requirements: The Maryland experiment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(1), pages 3-22, October.
  20. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
  21. Cees Gorter & Guyonne R. J. Kalb, 1996. "Estimating the Effect of Counseling and Monitoring the Unemployed Using a Job Search Model," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 590-610.
  22. Jan C. van Ours & Milan Vodopivec, 2006. "How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 351-378, April.
  23. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. After all, not that much moral hazard in unemployment insurance?
    by Economic Logician in Economic Logic on 2010-01-20 15:03:00
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Cited by:
  1. Lehmann, Hartmut & Muravyev, Alexander, 2011. "Labor Markets and Labor Market Institutions in Transition Economies," IZA Discussion Papers 5905, Institute for the Study of Labor (IZA).
  2. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica
    [Unemployment insurance: a survey]
    ," MPRA Paper 52332, University Library of Munich, Germany.

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  1. Economic Logic blog

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