@TechReport{iza:izadps:dp7740, author={Berg, Gerard J. van den and Klaauw, Bas van der}, title={Structural Empirical Evaluation of Job Search Monitoring}, year={2013}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={7740}, url={https://www.iza.org/publications/dp7740}, abstract={We structurally estimate a novel job search model with endogenous job search effort, job quality dispersion, and effort monitoring, taking into account that monitoring effects may be mitigated by on-the-job search and search channel substitution. The data are from a randomized experiment conducted in the Netherlands. They include registers of post-unemployment outcomes like wages and job mobility, and survey data on measures of search behavior. As such we are the first to study monitoring effects on post-unemployment outcomes. We find that the option to climb the job ladder reduces substitution between search channels during unemployment and compensates for adverse long-run effects of monitoring on wages. We use the structural estimates to compare monitoring to counterfactual policies against moral hazard, like re-employment bonuses and changes in the unemployment benefits path. Replacing monitoring by an overall benefits reduction in a way that is neutral to the worker results in slightly smaller effects with lower administrative costs.}, keywords={search channels;treatment;job mobility;job duration;wage;active labor market policy;search effort;unemployment duration;multi-tasking;randomized social experiment}, }