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Effects of Welfare Sanctions in Couple Households

Author

Listed:
  • van den Berg, Gerard J.

    (University of Groningen)

  • Uhlendorff, Arne

    (CREST)

  • Wolf, Markus

    (Institute for Employment Research (IAB), Nuremberg)

  • Wolff, Joachim

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

Means-tested welfare benefits are usually provided at the household level. Job search effort of unemployed welfare benefit recipients is monitored, and non-compliance with job search requirements can lead to a sanction and therewith to a temporary drop in household income. Among unemployed couples on welfare, a sanction is typically induced by one of the partners but potentially the burden is shared by both. We consider effects of sanctions on their transition rates into work. We examine theoretical implications and provide empirical evidence based on administrative data from Germany. We find that sanctions increase the probability of entering employment for the sanctioned welfare recipient but also for their partner. Females react more strongly to a sanction of their partner than males.

Suggested Citation

  • van den Berg, Gerard J. & Uhlendorff, Arne & Wolf, Markus & Wolff, Joachim, 2025. "Effects of Welfare Sanctions in Couple Households," IZA Discussion Papers 18253, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18253
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    References listed on IDEAS

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    1. Gerard J. van den Berg & Bas van der Klaauw, 2006. "Counseling And Monitoring Of Unemployed Workers: Theory And Evidence From A Controlled Social Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 895-936, August.
    2. 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.
    3. Doñate-Buendía, Anabel & García-Gallego, Aurora & Petrović, Marko, 2022. "Gender and other moderators of giving in the dictator game: A meta-analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 280-301.
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    6. Stefano Lombardi & Gerard J. van den Berg & Johan Vikström, 2024. "Empirical Monte Carlo evidence on estimation of timing-of-events models," Econometric Reviews, Taylor & Francis Journals, vol. 44(1), pages 90-118, September.
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    13. Bruno Crépon & Marc Ferracci & Grégory Jolivet & Gerard J. Berg, 2018. "Information shocks and the empirical evaluation of training programs during unemployment spells," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04134813, HAL.
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    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

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