DP4298 Experiments on Unemployment Benefit Sanctions and Job Search Behaviour

Author(s): Jan Boone, Abdolkarim Sadrieh, Jan C. van Ours
Publication Date: March 2004
Keyword(s): C91, experiments, job search, sanctions, unemployment benefits
JEL(s): J64, J65
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4298

This Paper presents the results of an experimental study on unemployment benefit sanctions. The experimental set-up allows us to distinguish between the effects of benefit sanctions once they are imposed (the ex post effect) and the effects that discourage the unemployed from risking benefit sanctions (the ex ante effect). We find that both effects matter. Moreover, the ex ante effect turns out to be substantial and bigger than the ex post effect. Benefits sanctions stimulate the outflow from unemployment.