The Effect Of Benefit Sanctions On The Duration Of Unemployment
This paper investigates the effectiveness of unemployment benefit sanctions in reducing unem-ployment duration. Swiss data on benefit sanctions allow us to separate the effect of a warning that a person is not complying with eligibility requirements from the effect of the actual enforce-ment of a benefit sanction. Moreover, public employment services are given substantial leeway in setting the monitoring intensity. Results indicate that both warning and enforcement have a positive effect on the exit rate out of unemployment, and that increasing the monitoring intensity reduces the duration of unemployment of the nonsanctioned. (JEL: J64, J65, J68) Copyright (c) 2005 by the European Economic Association.
Volume (Year): 3 (2005)
Issue (Month): 6 (December)
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References listed on IDEAS
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- 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.
- 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.
- 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.
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