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The Effect of Benefit Sanctions on the Duration of Unemployment

Author

Listed:
  • Lalive, Rafael

    (University of Lausanne)

  • van Ours, Jan C.

    (Erasmus School of Economics)

  • Zweimüller, Josef

    (University of Zurich)

Abstract

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.

Suggested Citation

  • Lalive, Rafael & van Ours, Jan C. & Zweimüller, Josef, 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," IZA Discussion Papers 469, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp469
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    References listed on IDEAS

    as
    1. Jan C. van Ours, 2000. "Do Active Labor Market Policies Help Unemployed Workers to Find and Keep Regular Jobs?," William Davidson Institute Working Papers Series 289, William Davidson Institute at the University of Michigan.
    2. Huirong Li & Jian Yang, 1999. "Stochastic Threshold Models on Interest Rate," University of Western Ontario, Departmental Research Report Series 9913, University of Western Ontario, Department of Economics.
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    benefit sanctions; unemployment duration; monitoring;
    All these keywords.

    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
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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