Engineering an incentive to search for work: A comparison groups approach

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 132
Issue: C
Pages: 1-4

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Social comparisons are important in the employment sphere. A “culture of unemployment” may evolve and prevail because it is optimal for an individual to remain unemployed when other unemployed individuals constitute his main reference group. We advance the idea that by making the receipt of unemployment benefits conditional on engagement in an incentive-enhancing activity (for example, work under state-sponsored employment schemes or participation in work-site-based training programs), a government can engineer a revision of the reference groups of an unemployed individual in order to induce him to seek work.

Technical Details

RePEc Handle
repec:eee:ecolet:v:132:y:2015:i:c:p:1-4
Journal Field
General
Author Count
3
Added to Database
2026-01-25