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Discussion Paper Details

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Title: Punitive Sanctions and the Transition Rate From Welfare to Work

Author(s): Gerard van den Berg, Bas van der Klaauw and Jan C. van Ours

Publication Date: May 2000

Keyword(s): Punishment, Search Effort, Unemployment Duration and Welfare Agency

Programme Area(s): Labour Economics

Abstract: In The Netherlands, the average exit rate out of welfare is dramatically low. Most welfare recipients have to comply with guidelines on job search effort that are imposed by the welfare agency. If they do not, then a sanction in the form of a temporary benefit reduction can be imposed. This paper investigates the effect of such sanctions on the transition from welfare to work using a unique set of rich administrative data on welfare recipients in The Netherlands. We find that the imposition of sanctions substantially increases the individual transition rate from welfare to work. We also describe the other determinants of the transition from welfare to work.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2447

Bibliographic Reference

Berg, G, van der Klaauw, B and van Ours, J. 2000. 'Punitive Sanctions and the Transition Rate From Welfare to Work'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2447