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Title:Imposed benefit sanctions and the unemployment-to-employment transition: the German experience PDF Logo
Authors:Müller, Kai-Uwe
Steiner, Viktor
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3483
Abstract:We analyze the effect of imposed benefit sanctions on the unemployment-to-employment transition of unemployed people entitled to unemployment compensation on the basis of register data from the German Federal Employment Agency. We combine propensity score matching with a discrete-time hazard rate model which accounts for the dynamic nature of the treatment. We find positive short- and long-term effects of benefit sanctions which are robust for men and women in East and West Germany. The effects diminish with the elapsed unemployment duration until a sanction is imposed. The limited use of benefit sanctions can thus be an effective activation tool if they take place not too late in an individual's unemployment spell.
Subjects:Benefit sanctions
unemployment transitions
German labor market reform
ex-post evaluation
propensity score matching
hazard rate model
unobserved heterogeneity
JEL:J64
Persistent Identifier of the first edition:urn:nbn:de:101:1-2008052738
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
Publikationen von Forscherinnen und Forschern des DIW

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