The Effect of Benefit Sanctions on the Duration of Unemployment
- 1 December 2005
- journal article
- Published by Oxford University Press (OUP) in Journal of the European Economic Association
- Vol. 3 (6), 1386-1417
- https://doi.org/10.1162/154247605775012879
Abstract
This paper investigates the effectiveness of unemployment benefit sanctions in reducing unemployment duration. Swiss data on benefit sanctions allow us to separate the effect of a warning that a person is not complying with eligibility requirements from the effect of the actual enforcement of a benefit sanction. Moreover, public employment services are given substantial leeway in setting the monitoring intensity. Results indicate that both warning and enforcement have a positive effect on the exit rate out of unemployment, and that increasing the monitoring intensity reduces the duration of unemployment of the nonsanctioned. (JEL: J64, J65, J68)Keywords
Other Versions
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