Intensifying the use of benefit sanctions : an effective tool to shorten welfare receipt and speed up transitions to employment?

Boockmann, Bernhard ; Thomsen, Stephan L. ; Walter, Thomas

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URN: urn:nbn:de:bsz:180-madoc-25940
Document Type: Working paper
Year of publication: 2009
The title of a journal, publication series: ZEW Discussion Papers
Volume: 09-072
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 300 Social sciences, sociology, anthropology
Classification: JEL: J64 I38 C31 ,
Subject headings (SWD): Deutschland , Sozialhilfeempfänger , Sozialhilfe , Wirkungsanalyse , Arbeitsangebot , Berufliche Integration
Keywords (English): benefit sanctions , welfare recipients , IV , LATE
Abstract: Benefit sanctions imposed on non-compliant welfare recipients are a new element in the German welfare system. In practice, the sanction policy and the application of sanctions vary considerably across the 439 welfare agencies. Based on combined administrative and survey data, these differences are used as instrumental variables to estimate the effect of sanctions on the drop-out from welfare and the transition to employment. The estimated local average treatment effect (LATE) is an estimate of the effectiveness of an intensified use of sanctions. The results show that tightening sanction policy would be quite effective.
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