@TechReport{iza:izadps:dp3483, author={Müller, Kai-Uwe and Steiner, Viktor}, title={Imposed Benefit Sanctions and the Unemployment-to-Employment Transition: The German Experience}, year={2008}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={3483}, url={https://www.iza.org/index.php/publications/dp3483}, abstract={We analyze the effect of imposed benefit sanctions on the unemployment-to-employment transition of unemployed people entitled to unemployment compensation on the basis of register data from the German Federal Employment Agency. We combine propensity score matching with a discrete-time hazard rate model which accounts for the dynamic nature of the treatment. We find positive short- and long-term effects of benefit sanctions which are robust for men and women in East and West Germany. The effects diminish with the elapsed unemployment duration until a sanction is imposed. The limited use of benefit sanctions can thus be an effective activation tool if they take place not too late in an individual’s unemployment spell.}, keywords={benefit sanctions;unemployment transitions;German labor market reform;ex-post evaluation;propensity score matching;hazard rate model;unobserved heterogeneity}, }