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The Effect of Benefit Sanctions on the Duration of Unemployment

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Author Info

  • Lalive, Rafael

    () (University of Lausanne)

  • van Ours, Jan C.

    () (Tilburg University)

  • Zweimüller, Josef

    () (University of Zurich)

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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Bibliographic Info

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

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Length: 43 pages
Date of creation: Apr 2002
Date of revision:
Publication status: published in: Journal of the European Economic Association, 2005, 3 (6), 1386-1417
Handle: RePEc:iza:izadps:dp469

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Related research

Keywords: benefit sanctions; unemployment duration; monitoring;

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References

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  1. 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 Evaluation of Labour Market and Education Policy.
  2. 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.
  3. Rafael Lalive & Jan C. van Ours & Josef Zweimueller, . "The Impact of Active Labor Market Programs on the Duration of Unemployment," IEW - Working Papers 041, Institute for Empirical Research in Economics - University of Zurich.
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