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Impact of Benefit Sanctions on Unemployment Outflow - Evidence from German Survey Data


  • Hohenleitner, Ingrid
  • Hillmann, Katja


In course of the ''Hartz IV'' reform implementation in January 2005, Germany has tightened unemployment benefit sanctions. In addition, the regulations with respect to job offer acceptance have been strengthened radically. As non-compliant behavior is supposed to entail benefit sanctions, we suspect that in particular sanctioned unemployed tend to make more concessions on the job conditions they are willing to accept, and hence enter employment more quickly. Moreover, we expect that sanctioned persons could otherwise tend to exit from labor market more quickly. In our analysis we examine the impact of sanctions on the probability of reemployment or leaving the labor force. Employing a mixed proportional hazard model enables us to draw causal inference of sanction enforcment on the unemployment exit hazard. Based on a survey sample covering the years 2005-2007, we find evidence for a positive impact of sanctions on reemployment, whereas the effect on leaving the labor market also turns out to be positive.

Suggested Citation

  • Hohenleitner, Ingrid & Hillmann, Katja, 2012. "Impact of Benefit Sanctions on Unemployment Outflow - Evidence from German Survey Data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 66055, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc12:66055

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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. 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.
    3. Bräuninger, Michael, 2014. "Tax sovereignty and feasibility of international regulations for tobacco tax policies," HWWI Research Papers 152, Hamburg Institute of International Economics (HWWI).
    4. 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).

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    JEL classification:

    • 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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