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

Katja Hillmann and Ingrid Hohenleitner

No 129, HWWI Research Papers from Hamburg Institute of International Economics (HWWI)

Abstract: Similar to many other European countries, Germany's unemployment policy made a paradigm shift towards activation policy with a tightened monitoring and sanction regime. In our analysis, 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 enforcement on unemployment exit hazards. Based on a survey sample, covering the first three years after implementation of the Hartz IV law in 2005, we find evidence for a positive impact of sanctions on getting employed, but also on leaving the labor market.

Keywords: unemployment benefit sanctions; unemployment duration; employment; nonemployment; mixed proportional hazard estimation (search for similar items in EconPapers)
JEL-codes: I38 J48 J63 J64 J68 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-eur and nep-lab
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https://www.econstor.eu/bitstream/10419/62311/1/723862893.pdf (application/pdf)

Related works:
Working Paper: Impact of benefit sanctions on unemployment outflow: Evidence from German survey data (2012) Downloads
Working Paper: Impact of Benefit Sanctions on Unemployment Outflow - Evidence from German Survey Data (2012) Downloads
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