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The impact of benefit sanctions on equilibrium wage dispersion and job vacancies

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  • Sébastien Ménard

    (TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

Abstract

Usually, the literature on benefit sanctions focuses on the effects on labour supply. In this paper, we integrate commuting costs in an equilibrium job search model with wages posting to analyse the effects of job search monitoring on labour demand. We show that benefit sanctions increase job creation, but degrade the job quality and the average job-productivity. In addition, we emphasise that the optimal UB system is characterised by using both benefit sanctions and the mutualisation of commuting costs.

Suggested Citation

  • Sébastien Ménard, 2020. "The impact of benefit sanctions on equilibrium wage dispersion and job vacancies," Working Papers hal-02441229, HAL.
    • Handle: RePEc:hal:wpaper:hal-02441229
    Note: View the original document on HAL open archive server: https://hal.science/hal-02441229
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    Keywords

    Wage dispersion; Job search; sanctions; Monitoring;
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