Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121177
Authors: 
Hillmann, Katja
Hohenleitner, Ingrid
Year of Publication: 
2015
Series/Report no.: 
HWWI Research Paper 168
Abstract: 
Similar to numerous other European countries, Germany's unemployment policy went through a paradigm shift in 2005, towards activation policy by tightening their monitoring and sanction regime. With our study, we aim to provide causal evidence for whether an intended positive effect of benefit sanctions on employment entry of welfare recipients has been bought at the expense of an unintended enhanced incentive to leave the labor market. Using a mixed proportional hazard model, we draw causal inference of sanction enforcements on unemployment exit hazards. Based on a novel survey sample covering the first three years after the 'Hartz IV' law came into effect, we provide evidence for a positive impact of sanctions on employment as well as on exit from labor force.
Subjects: 
unemployment benefit sanctions
unemployed welfare recipients
unemployment duration
transition into employment
transition into non-employment
exit from labor force
mixed proportional hazard estimation
JEL: 
J48
J63
J64
J68
I38
Document Type: 
Working Paper

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