%0 Report
        %A Boone, Jan
%A Ours, Jan C. van
        %T Modeling Financial Incentives to Get Unemployed Back to Work
        %D 2000
        %8 2000 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 108
        %U https://www.iza.org/index.php/publications/dp108
        %X We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job search guidelines - affect unemployment. In our analysis we find that not only micro effects concerning the behavior of individual unemployed workers are relevant, but also macro-spillover effects from the additional creation of vacancies, which originates from the increased effectiveness of labor supply. We advocate that for a given loss in welfare for the unemployed benefit sanctions are more effective in reducing unemployment than an across the board reduction in the replacement rate.
        %K financial incentives
%K Unemployment benefits
%K sanctions