Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/62311 
Year of Publication: 
2012
Series/Report no.: 
HWWI Research Paper No. 129
Publisher: 
Hamburgisches WeltWirtschaftsInstitut (HWWI), Hamburg
Abstract: 
Similar to many other European countries, Germany's unemployment policy made a paradigm shift towards activation policy with a tightened monitoring and sanction regime. In our analysis, we examine the impact of benefit sanctions on the probability of getting employed or leaving the labor force. Using a mixed proportional hazard model, we draw causal inference of sanction enforcement on unemployment exit hazards. Based on a survey sample, covering the first three years after implementation of the Hartz IV law in 2005, we find evidence for a positive impact of sanctions on getting employed, but also on leaving the labor market.
Subjects: 
unemployment benefit sanctions
unemployment duration
employment
nonemployment
mixed proportional hazard estimation
JEL: 
J48
J63
J64
J68
I38
Document Type: 
Working Paper

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