TY  - RPRT
        AU  - Berg, Gerard J. van den
AU  - Klaauw, Bas van der
        TI  - Structural Empirical Evaluation of Job Search Monitoring
        PY  - 2013/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7740
        UR  - https://www.iza.org/publications/dp7740
        AB  - 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.
        KW  - search channels
KW  - treatment
KW  - job mobility
KW  - job duration
KW  - wage
KW  - active labor market policy
KW  - search effort
KW  - unemployment duration
KW  - multi-tasking
KW  - randomized social experiment
        ER  -