The effect of unemployment insurance sanctions on the transition rate from unemployment to employment
JH Abbring, GJ van den Berg, JC van Ours
ECONOMIC JOURNAL | BLACKWELL PUBLISHING | Published : 2005
Sanctions or punitive benefits reductions arc increasingly used as a tool to enforce compliance of unemployment insurance claimants with search requirements. This article analyses sanctions using a unique administrative data set of individuals who started collecting unemployment insurance in the Netherlands in 1992. After correction for selectivity in lie imposition of sanctions, we find that sanctions substantially raise individual re-employment rates. © Royal Economic Society 2005.