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Evaluating Vacancy Referrals and the Roles of Sanctions and Sickness Absence

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  • Gerard J van den Berg
  • Barbara Hofmann
  • Arne Uhlendorff

Abstract

Job vacancy referrals are a common active labour market policy measure. Unemployment insurance agencies may combat moral hazard by punishing refusals to apply to assigned vacancies. During sickness spells, minimum requirements on search behaviour do not apply. This may reduce the threat effect of sanctions. We study effects of vacancy referrals and sanctions on unemployment duration and job match quality. We find that a vacancy referral increases the transition rate into work. We also find a positive effect of a vacancy referral on the probability of reporting sick.

Suggested Citation

  • Gerard J van den Berg & Barbara Hofmann & Arne Uhlendorff, 2019. "Evaluating Vacancy Referrals and the Roles of Sanctions and Sickness Absence," The Economic Journal, Royal Economic Society, vol. 129(624), pages 3292-3322.
    • Handle: RePEc:oup:econjl:v:129:y:2019:i:624:p:3292-3322.
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    File URL: http://hdl.handle.net/10.1093/ej/uez032
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    Citations

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    Cited by:

    1. Gerard J. van den Berg & Hanno Foerster & Arne Uhlendorff, 2019. "Structural Empirical Analysis of Vacancy Referrals With Imperfect Monitoring and the Strategic Use of Sickness Absence," CRC TR 224 Discussion Paper Series crctr224_2019_123v2, University of Bonn and University of Mannheim, Germany.
    2. Marco Caliendo & Robert Mahlstedt & Gerard J. van den Berg & Johan Vikström, 2023. "Side effects of labor market policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(2), pages 339-375, April.
    3. Gerard J. van den Berg & Arne Uhlendorff & Joachim Wolff, 2022. "The Impact of Sanctions for Young Welfare Recipients on Transitions to Work and Wages, and on Dropping Out," Economica, London School of Economics and Political Science, vol. 89(353), pages 1-28, January.
    4. De Brouwer, Octave & Leduc, Elisabeth & Tojerow, Ilan, 2023. "The consequences of job search monitoring for the long-term unemployed: Disability instead of employment?," Journal of Public Economics, Elsevier, vol. 224(C).
    5. Márton Csilalg & Lili Márk, 2023. "The Incentive Effects of Sickness Benefit for the Unemployed – Analysis of a Reduction in Potential Benefit Duration," CERS-IE WORKING PAPERS 2317, Institute of Economics, Centre for Economic and Regional Studies.
    6. Cheung, Maria & Egebark, Johan & Forslund, Anders & Laun, Lisa & Rödin, Magnus & Vikström, Johan, 2019. "Does job search assistance reduce unemployment? Experimental evidence on displacement effects and mechanisms," Working Paper Series 2019:25, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Gerard J. van den Berg & Hanno Foerster & Arne Uhlendorff, 2021. "A Structural Analysis of Vacancy Referrals with Imperfect Monitoring and the Strategic Use of Sickness Absence," Boston College Working Papers in Economics 1042, Boston College Department of Economics, revised 17 Sep 2023.

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