Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35015
Authors: 
Müller, Kai-Uwe
Steiner, Viktor
Year of Publication: 
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: 
Document Type: 
Working Paper

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