Discussion Paper Details

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Title: The Effect of Benefit Sanctions on the Duration of Unemployment

Author(s): Rafael Lalive, Jan C. van Ours and Josef Zweimüller

Publication Date: April 2002

Keyword(s): benefit sanctions, monitoring and unemployment duration

Programme Area(s): Labour Economics

Abstract: This Paper investigates the effectiveness of benefit sanctions in reducing unemployment duration. Data from the Swiss labour market allow making a distinction between the effect of a warning that a person is not complying with eligibility requirements and the effect of the actual enforcement of a benefit sanction. We find that both warning and enforcement have a positive effect on the exit rate out of unemployment. Moreover, the stricter the sanction policy the shorter the duration of unemployment. This can be taken as evidence of a strong ex-ante effect of a strict sanction policy.

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Bibliographic Reference

Lalive, R, van Ours, J and Zweimüller, J. 2002. 'The Effect of Benefit Sanctions on the Duration of Unemployment'. London, Centre for Economic Policy Research.