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The Effect of Benefit Sanctions on the Duration of Unemployment

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  • Lalive, Rafael
  • van Ours, Jan C
  • Zweimüller, Josef

Abstract

This Paper investigates the effectiveness of benefit sanctions in reducing unemployment duration. Data from the Swiss labour 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 the duration of unemployment. This can be taken as evidence of a strong ex-ante effect of a strict sanction policy.

Suggested Citation

  • 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.
  • Handle: RePEc:cpr:ceprdp:3311
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    References listed on IDEAS

    as
    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. Huirong Li & Jian Yang, 1999. "Stochastic Threshold Models on Interest Rate," UWO Department of Economics Working Papers 9913, University of Western Ontario, Department of Economics.
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    More about this item

    Keywords

    benefit sanctions; monitoring; unemployment duration;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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