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Experiments on Unemployment Benefit Sanctions and Job Search Behavior

Author

Listed:
  • Boone, Jan

    () (Tilburg University)

  • Sadrieh, Abdolkarim

    () (Tilburg University)

  • van Ours, Jan C.

    () (Erasmus University Rotterdam)

Abstract

This paper presents the results of an experimental study on unemployment benefit sanctions. The experimental set-up allows us to distinguish between the effect of benefit sanctions once they are imposed (the ex post effect) and the effect that unemployed want to avoid getting a benefit sanction imposed (the ex ante effect). We find that both effects matter. Moreover, the ex ante effect turns out to be substantial and bigger than the ex post effect. Benefit sanctions stimulate the outflow from unemployment.

Suggested Citation

  • Boone, Jan & Sadrieh, Abdolkarim & van Ours, Jan C., 2004. "Experiments on Unemployment Benefit Sanctions and Job Search Behavior," IZA Discussion Papers 1000, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1000
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    References listed on IDEAS

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    Cited by:

    1. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    2. Bart COCKX & Muriel DEJEMEPPE & Andrey LAUNOV & Bruno VAN DER LINDEN, 2011. "Monitoring, Sanctions and Front-Loading of Job Search in a Non-Stationary Model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Daniela Cagno & Tibor Neugebauer & Carlos Rodriguez-Palmero & Abdolkarim Sadrieh, 2014. "Recall searching with and without recall," Theory and Decision, Springer, vol. 77(3), pages 297-311, October.
    4. Müller, Kai-Uwe & Oschmiansky, Frank, 2006. "Die Sanktionspolitik der Arbeitsagenturen nach den Hartz-Reformen: Analyse der Wirkungen des Ersten Gesetztes für moderne Dienstleistungen am Arbeitsmarkt," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-116, Social Science Research Center Berlin (WZB).
    5. Lukas Mergele & Michael Weber, 2017. "Public employment services under decentralization: evidence from a natural experiment," Working Papers 2017002, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    6. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers 41, Institute for the Study of Labor (IZA).
    7. Busk, Henna, 2016. "Sanctions and the exit from unemployment in two different benefit schemes," Labour Economics, Elsevier, vol. 42(C), pages 159-176.
    8. Bonin, Holger & Eichhorst, Werner & Florman, Christer & Hansen, Mette Okkels & Skiöld, Lena & Stuhler, Jan & Tatsiramos, Konstantinos & Thomasen, Henrik & Zimmermann, Klaus F., 2008. "Geographic Mobility in the European Union: Optimising its Economic and Social Benefits," IZA Research Reports 19, Institute for the Study of Labor (IZA).
    9. Rainer Eppel & Helmut Mahringer & Andrea Weber, 2014. "Job Search Behaviour and Job Search Success of the Unemployed," WIFO Working Papers 471, WIFO.
    10. Hizen, Yoichi & Kawata, Keisuke & Sasaki, Masaru, 2013. "An experimental test of a committee search model," European Economic Review, Elsevier, vol. 61(C), pages 59-76.
    11. Nicolas Jacquemet & Olivier L’Haridon & Isabelle Vialle, 2014. "Marché du travail, évaluation et économie expérimentale," Revue française d'économie, Presses de Sciences-Po, vol. 0(1), pages 189-226.
    12. Hofmann Barbara, 2012. "Short- and Long-term Ex-Post Effects of Unemployment Insurance Sanctions: Evidence from West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(1), pages 31-60, February.
    13. Svarer, Michael, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," IZA Discussion Papers 3015, Institute for the Study of Labor (IZA).
    14. Takao Asano & Hiroko Okudaira & Masaru Sasaki, 2015. "An experimental test of a search model under ambiguity," Theory and Decision, Springer, vol. 79(4), pages 627-637, December.
    15. Martins, Pedro S. & Pessoa e Costa, Sofia, 2014. "Reemployment and Substitution Effects from Increased Activation: Evidence from Times of Crisis," IZA Discussion Papers 8600, Institute for the Study of Labor (IZA).
    16. Micklewright, John & Nagy, Gyula, 2010. "The effect of monitoring unemployment insurance recipients on unemployment duration: Evidence from a field experiment," Labour Economics, Elsevier, vol. 17(1), pages 180-187, January.
    17. Yolanda Rebollo-Sanz & J. García-Pérez, 2015. "Are unemployment benefits harmful to the stability of working careers? The case of Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 1-41, March.
    18. Bachmann, Ronald & Beimann, Boris & Bredtmann, Julia & David, Peggy & Ehlert, Christoph & Kassenböhmer, Sonja & Schaffner, Sandra & Siemers, Lars, 2011. "Studies on flexicurity Lot 1: Study on various aspects of labour market performance using micro data from the European Union statistics on income and living conditions (EU-SILC). Contract No. VC/2010/," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72620.
    19. Arntz, Melanie & Lo, Simon M. S. & Wilke, Ralf A., 2008. "Bounds analysis of competing risks : a nonparametric evaluation of the effect of unemployment benefits on migration in Germany (Revised version of the FDZ Methodenbericht No. 04/2007)," FDZ Methodenreport 200806_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    20. Nicolas Jacquemet & Olivier L’Haridon & Isabelle Vialle, 2014. "Marché du travail, évaluation et économie expérimentale," Revue française d'économie, Presses de Sciences-Po, vol. 0(1), pages 189-226.
    21. Takao Asano & Hiroko Okudaira & Masaru Sasaki, 2015. "An Experimental Test of a Search Model under Ambiguity," KIER Working Papers 913, Kyoto University, Institute of Economic Research.
    22. Ott-Siim Toomet, 2005. "Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data," Bank of Estonia Working Papers 2005-09, Bank of Estonia, revised 10 Oct 2005.

    More about this item

    Keywords

    experiments; job search; sanctions; unemployment benefits;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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