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Impact of benefit sanctions on unemployment outflow: Evidence from German survey data

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  • Hillmann, Katja
  • Hohenleitner, Ingrid

Abstract

Similar to numerous other European countries, Germany's unemployment policy went through a paradigm shift towards activation policy by tightening their monitoring and sanction regime. In our study we examine the impact of benefit sanctions on the probability of getting employed or leaving the labor force. Using a mixed proportional hazard model, we draw causal inference of sanction enforcements on unemployment exit hazards. Based on a novel survey sample, covering the first three years after implementation of the Hartz IV law in 2005, we provide evidence for a positive impact of sanctions on employment entrance, but also on leaving the labor market.

Suggested Citation

  • Hillmann, Katja & Hohenleitner, Ingrid, 2012. "Impact of benefit sanctions on unemployment outflow: Evidence from German survey data," HWWI Research Papers 129 [rev.], Hamburg Institute of International Economics (HWWI).
  • Handle: RePEc:zbw:hwwirp:129r
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    References listed on IDEAS

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    Cited by:

    1. Busk, Henna, 2016. "Sanctions and the exit from unemployment in two different benefit schemes," Labour Economics, Elsevier, vol. 42(C), pages 159-176.
    2. Leppin, Julian S. & Reitz, Stefan, 2014. "The role of a changing market: Environment for credit default swap pricing," HWWI Research Papers 153, Hamburg Institute of International Economics (HWWI).
    3. Julian S. Leppin & Stefan Reitz, 2016. "The Role of a Changing Market Environment for Credit Default Swap Pricing," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 209-223, July.
    4. Bräuninger, Michael, 2014. "Tax sovereignty and feasibility of international regulations for tobacco tax policies," HWWI Research Papers 152, Hamburg Institute of International Economics (HWWI).
    5. Vöpel, Henning, 2013. "A Zidane clustering theorem: Why top players tend to play in one team and how the competitive balance can be restored," HWWI Research Papers 141, Hamburg Institute of International Economics (HWWI).

    More about this item

    Keywords

    unemployment benefit sanctions; unemployment duration; employment; non-employment; mixed proportional hazard estimation;

    JEL classification:

    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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