The Effect of Benefit Sanctions on the Duration of Unemployment
This paper investigates the effectiveness of benefit sanctions in reducing unemployment duration. Data from the Swiss labor 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 is the duration of unemployment of the non-sanctioned. This can be taken as evidence of a strong ex-ante effect of a strict sanction policy.
|Date of creation:||Apr 2002|
|Date of revision:|
|Publication status:||published in: Journal of the European Economic Association, 2005, 3 (6), 1386-1417|
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- Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 1999.
"Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System,"
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9913, University of Western Ontario, Department of Economics.
- Jeffrey Smith, 2000. "Is the Threat of Training More Effective than Training Itself? Experimental Evidence from the UI System," Econometric Society World Congress 2000 Contributed Papers 1660, Econometric Society.
- 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.
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