The Effect of Benefit Sanctions on the Duration of Unemployment

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The Effect of Benefit Sanctions on the Duration of Unemployment

Author Info

Lalive, Rafael (IEW, University of Zurich, CESifo and IZA, Bonn)
van Ours, Jan C. (CentER, Department of Economics, Tilburg University, CEPR, Institute for Labor Studies (OSA) and IZA, Bonn)
Zweimüller, Josef () (IEW, University of Zurich, CESifo, CEPR and IZA, Bonn)

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Abstract

This paper investigates the effectiveness of benefit sanctions in reducing unemployment duration. Data from the Swiss labor market allow making a distinction between the effect of a warning that a person is not complying with eligibility requirements and the effect of the actual enforcement of a benefit sanction. We find that both warning and enforcement have a positive effect on the exit rate out of unemployment. Moreover, the stricter the sanction policy the shorter is the duration of unemployment of the non-sanctioned. This can be taken as evidence of a strong ex-ante effect of a strict sanction policy.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 469.

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Length: 42 pages
Date of creation: Apr 2002
Date of revision:
Handle: RePEc:iza:izadps:dp469

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Article
- Rafael Lalive & Jan C. van Ours & Josef Zweimüller, 2005. "The Effect Of Benefit Sanctions On The Duration Of Unemployment," Journal of the European Economic Association, MIT Press, vol. 3(6), pages 1386-1417, December. [Downloadable!] (restricted)
Paper
- Lalive, R. & Ours, J.C. van & Zweimuller, J., 2002. "The effect of benefit sanctions on the duration of unemployment," Discussion Paper 19, Tilburg University, Center for Economic Research. [Downloadable!]
- Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," CEPR Discussion Papers 3311, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Rafael Lalive & Jan C. van Ours & Josef Zweimüller, . "The Effect of Benefit Sanctions on the Duration of Unemployment," IEW - Working Papers iewwp110, Institute for Empirical Research in Economics - IEW. [Downloadable!]

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

This paper has been announced in the following NEP Reports:

NEP-ALL-2002-05-03 (All new papers)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 1999. "Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System," UWO Department of Economics Working Papers 9913, University of Western Ontario, Department of Economics. [Downloadable!]
Other versions:
- Jeffrey Smith, 2000. "Is the Threat of Training More Effective than Training Itself? Experimental Evidence from the UI System," Econometric Society World Congress 2000 Contributed Papers 1660, Econometric Society. [Downloadable!]

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