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Type	Working Paper
Scope	Discipline-based scholarship
Title	The Effect of Benefit Sanctions on the Duration of Unemployment
Organization Unit	Macroeconomics and Labor Markets (Josef Zweimüller)
Authors	Rafael Lalive Jan C van Ours Josef Zweimüller
Language	English
Institution	University of Zurich
Series Name	Working paper series / Institute for Empirical Research in Economics
Number	No. 110
ISSN	1424-0459
Date	2002
Abstract Text	This paper investigates the effectiveness of benefit sanctions in reducing unemployment duration. Data from the Swiss labor 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 is the duration of unemployment of the non-sanctioned. This can be taken as evidence of a strong ex-ante effect of a strict sanction policy.
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