Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/193772
Authors: 
Hohenleitner, Ingrid
Hillmann, Katja
Year of Publication: 
2019
Series/Report no.: 
HWWI Research Paper 190
Abstract: 
This study provides the first comprehensive analysis of sanction effects on post-welfare employment quality in Europe using the outcome variables daily wage, yearly income, and covering job stability with the durations of three employment states: employed, unemployed, and supplementary benefit receipt. Applying PSM, we estimate the treatment effects (ATT) of UB-II-sanctions in Germany based on a rich administrative data set. Novelties of this study are the analysis of postwelfare sanction effects also for employed welfare recipients ("Aufstocker") and for indirectly affected employable household members. Our analyses reveal highly significant and strongly negative effects of benefit sanctions on the quality of post-welfare employment in the short and long run. In terms of income and employment stability we find a catch-up process which is by far not strong enough to compensate the loss within two years. For employed welfare recipients the negative effects on income and job stability even exceed the effects for unemployed. Particularly striking are the remarkably strong and highly significant negative effects on indirectly affected unemployed household members.
Subjects: 
benefit sanctions
sanction effects
post-unemployment employment quality
employment stability
long-term effects
catch-up process
unemployment benefit policy
welfare policy
JEL: 
I38
J24
J48
J64
J65
J68
Document Type: 
Working Paper
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