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Sanctions for young welfare recipients

Author

Listed:
  • van den Berg, Gerard J.

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Uhlendorff, Arne

    (University of Mannheim)

  • Wolff, Joachim

    (IAB Nuremberg)

Abstract

Social welfare systems usually imply specific obligations for benefit recipients. If a recipient does not comply with these obligations, a sanction involving a punitive benefits reduction may be imposed. In this paper we give an overview of the literature on the effects of sanctions in social welfare systems and we present first results on the effects of sanctions for young unemployed welfare recipients based on German administrative data. The German welfare system is particularly strict for young individuals. We distinguish between mild and strong sanctions and we focus on the impact of these sanctions on job finding probabilities. Our results suggest that each type of sanction leads to an increased transition rate to work, and that this effect is higher for strong sanctions. However, strong sanctions for young welfare recipients involve a complete withdrawal of the basic cash transfer payments.

Suggested Citation

  • van den Berg, Gerard J. & Uhlendorff, Arne & Wolff, Joachim, 2013. "Sanctions for young welfare recipients," Working Paper Series 2013:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2013_026
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    Cited by:

    1. Pipinis, Dimitris & Taylor, Sarah & Tuffin, Andrew & Ross, Colin & Tse, Max, 2016. "Benefit Sanctions: Detailed Methodology," MPRA Paper 80012, University Library of Munich, Germany.
    2. Lombardi, Stefano, 2019. "Threat effects of monitoring and unemployment insurance sanctions: evidence from two reforms," Working Paper Series 2019:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

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    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • 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

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