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Punitive Sanctions and the Transition Rate from Welfare to Work

Author

Listed:
  • Gerard J. van den Berg

    (Free University Amsterdam, Tinbergen Institute, IFAU-Uppsala, INSEE-CREST, and Centre for Economic Policy Research (CEPR))

  • Bas van der Klaauw

    (Free University Amsterdam, Tinbergen Institute, Scholar, and CEPR)

  • Jan C. van Ours

    (Tilburg University, Center of Economic Research (CentER), and CEPR)

Abstract

In the Netherlands, the average exit rate out of welfare is dramatically low. Most welfare recipients have to comply with guidelines on job search effort that are imposed by the welfare agency. If they do not, then a sanction in the form of a temporary benefit reduction can be imposed. This article investigates the effect of such sanctions on the transition rate from welfare to work using a unique set of rich register data on welfare recipients. We find that the imposition of sanctions substantially increases the individual transition rate from welfare to work.

Suggested Citation

  • 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.
  • Handle: RePEc:ucp:jlabec:v:22:y:2004:i:1:p:211-210
    DOI: 10.1086/380408
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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