The effect of unemployment benefit II sanctions on reservation wages
"In 2005, benefit sanctions in Germany were tightened with the introduction of the new means-tested unemployment benefit II (UB II), codified in Social Code (SC) II. This study analyzes the effect of benefit sanctions on the reservation wage of sanctioned unemployment benefit II recipients. The behavioral effect of a benefit sanction is an empirically open question. According to job search theory, benefit sanctions directly reduce reservation wages. To explore this hypothesis, propensity score matching is adopted. The dataset used is a unique survey of UB II recipients in the first year of SC II. For the identification of the effect, the study relies on the rich individual data and the rather unsystematic sanctioning process in the starting months after the introduction of the SC II. The timing of the sanction is explicitly considered by estimating the effects for the first four quarters of UB II receipt in 2005. The main result is that there was no significant effect of sanctions on the reservation wages of sanctioned unemployment benefit II recipients. A side result is that sanctioned UB II recipients were not more likely to be employed at the time of their interview either. Both results are robust to various matching estimators, estimation specifications and to the timing of the UB II sanction." (Author's abstract, IAB-Doku) ((en))
|Date of creation:||23 Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iab.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- van den Berg, Gerard J & van der Klaauw, Bas & van Ours, Jan C, 2000. "Punitive Sanctions and the Transition Rate From Welfare to Work," CEPR Discussion Papers 2447, C.E.P.R. Discussion Papers.
- Berg, Gerard J. van den & Klaauw, Bas van der & Ours, Jan C. van, 1998. "Punitive sanctions and the transition rate from welfare to work," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Jaap H. Abbring & Gerard J. Berg & Jan C. Ours, 2005. "The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment," Economic Journal, Royal Economic Society, vol. 115(505), pages 602-630, 07.
- van den Berg, Gerard J, 1990. "Nonstationarity in Job Search Theory," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 255-77, April.
- Lechner, Michael & Smith, Jeffrey A., 2003.
"What is the Value Added by Caseworkers?,"
IZA Discussion Papers
728, Institute for the Study of Labor (IZA).
- Michael Lechner & Jeffrey Smith, 2003. "What is the Value Added by Caseworkers?," University of St. Gallen Department of Economics working paper series 2003 2003-05, Department of Economics, University of St. Gallen.
- Michael Lechner & Jeffrey Smith, 2003. "What is the Value Added by Caseworkers?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20031, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
- Lechner, Michael & Smith, Jeffrey, 2003. "What is the Value Added by Caseworkers?," CEPR Discussion Papers 3825, C.E.P.R. Discussion Papers.
- Müller, Kai-Uwe, 2007. "Observed and unobserved determinants of unemployment insurance benefit sanctions in Germany: Evidence from matched individual and regional administrative data," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-107, Social Science Research Center Berlin (WZB).
- Kemmerling, Achim & Bruttel, Oliver, 2005. "New politics in German labour market policy? The implications of the recent Hartz reforms for the German welfare state," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2005-101, Social Science Research Center Berlin (WZB).
- Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
- Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:200819. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek)
If references are entirely missing, you can add them using this form.