IDEAS home Printed from https://ideas.repec.org/a/hhs/jdaecn/0039.html

The Effect of Punitive Sanctions on the Transition Rate from Welfare to Work: Evidence from Denmark

Author

Listed:
  • Qureshi, Atef

    (Finansministeriet)

Abstract

Applying a mixed proportional hazard timing-of-events model in the confines of a search model punitive sanctions are in the current study found to have positive effect on the transition rate from welfare to work. Furthermore, the empirical analysis of this paper shows that the magnitude of this positive effect depends on the type of sanction. This effect diminishes over time and is heterogeneous. Finally, the existence of alternate »escape routes« from the welfare system, other than employment, does not undermine the positive effect of a sanction.

Suggested Citation

  • Qureshi, Atef, 2013. "The Effect of Punitive Sanctions on the Transition Rate from Welfare to Work: Evidence from Denmark," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2013(2), pages 225-246.
    • Handle: RePEc:hhs:jdaecn:0039
    as

    Download full text from publisher

    File URL: https://www.xn--nt-lka.dk/files/2013/2013_9.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. Svarer, Michael, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," IZA Discussion Papers 3015, IZA Network @ LISER.
    3. Gerard J. van den Berg & Bas van der Klaauw & Jan C. van Ours, 2004. "Punitive Sanctions and the Transition Rate from Welfare to Work," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 211-241, January.
    4. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
    5. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
    6. Baker, Michael & Melino, Angelo, 2000. "Duration dependence and nonparametric heterogeneity: A Monte Carlo study," Journal of Econometrics, Elsevier, vol. 96(2), pages 357-393, June.
    7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    8. Richardson, Katarina & van den Berg, Gerard J, 2008. "Duration dependence versus unobserved heterogeneity in treatment effects: Swedish labor market training and the transition rate to employment," Working Paper Series 2008:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Abbring, Jaap H & van den Berg, Gerard J, 2003. "A simple procedure for the evaluation of treatment effects on duration variables," Working Paper Series 2003:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
    11. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anne Britt Djuve & Hanne Cecilie Kavli, 2019. "Refugee integration policy the Norwegian way – why good ideas fail and bad ideas prevail," Transfer: European Review of Labour and Research, , vol. 25(1), pages 25-42, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaure, Simen & Røed, Knut & Westlie, Lars, 2012. "Job search incentives and job match quality," Labour Economics, Elsevier, vol. 19(3), pages 438-450.
    2. Bart Cockx & Stijn Baert, 2015. "Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit or Non-Profit, or Keep it Public?," CESifo Working Paper Series 5587, CESifo.
    3. Stefano Lombardi & Gerard J. van den Berg & Johan Vikström, 2024. "Empirical Monte Carlo evidence on estimation of timing-of-events models," Econometric Reviews, Taylor & Francis Journals, vol. 44(1), pages 90-118, September.
    4. Michael Svarer, 2011. "Crime and partnerships," Review of Economics of the Household, Springer, vol. 9(3), pages 307-325, September.
    5. B. Cockx & C. Goebel & S. Robin, 2009. "Is income support for part-time workers a steppingstone to regular jobs? An application to young long-term unemployed women," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/561, Ghent University, Faculty of Economics and Business Administration.
    6. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
    7. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2009. "The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark," Labour Economics, Elsevier, vol. 16(4), pages 409-417, August.
    8. Haywood, Luke, 2016. "Wealth effects on job preferences," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 38, pages 1-11.
    9. Hess, Wolfgang & Persson, Maria, 2010. "The Duration of Trade Revisited. Continuous-Time vs. Discrete-Time Hazards," Working Papers 2010:1, Lund University, Department of Economics.
    10. Gerard J. Berg & Johan Vikström, 2014. "Monitoring Job Offer Decisions, Punishments, Exit to Work, and Job Quality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 284-334, April.
    11. van Ours, Jan C. & Lalive, Rafael & Arni, Patrick, 2009. "How Effective Are Unemployment Benefit Sanctions?," CEPR Discussion Papers 7541, C.E.P.R. Discussion Papers.
    12. Hess, Wolfgang & Persson, Maria, 2009. "Survival and Death in International Trade - Discrete-Time Durations of EU Imports," Working Papers 2009:12, Lund University, Department of Economics.
    13. Frijters, Paul & de New, John & Shields, Michael A., 2005. "Socio-Economic Status, Health Shocks, Life Satisfaction and Mortality: Evidence from an Increasing Mixed Proportional Hazard Model," IZA Discussion Papers 1488, IZA Network @ LISER.
    14. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.
    15. Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    16. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
    17. Auray, Stéphane & Lepage-Saucier, Nicolas, 2021. "Stepping-stone effect of atypical jobs: Could the least employable reap the most benefits?," Labour Economics, Elsevier, vol. 68(C).
    18. Jaap Abbring & James Heckman, 2008. "Dynamic policy analysis," CeMMAP working papers CWP05/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    19. Tatsiramos, Konstantinos, 2010. "Job displacement and the transitions to re-employment and early retirement for non-employed older workers," European Economic Review, Elsevier, vol. 54(4), pages 517-535, May.
    20. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.

    More about this item

    Keywords

    ;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:jdaecn:0039. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lasse Wolsgård The email address of this maintainer does not seem to be valid anymore. Please ask Lasse Wolsgård to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/nffffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.