Effects of Welfare Sanctions in Couple Households

Gerard J. van den Berg (), Arne Uhlendorff, Markus Wolf () and Joachim Wolff ()
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Gerard J. van den Berg: University of Groningen
Markus Wolf: Institute for Employment Research (IAB), Nuremberg
Joachim Wolff: Institute for Employment Research (IAB), Nuremberg

No 18253, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: social assistance; job search; monitoring; gender; unemployment; intra-household bargaining (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-eur and nep-lab
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