%0 Report %A Müller, Kai-Uwe %A Steiner, Viktor %T Imposed Benefit Sanctions and the Unemployment-to-Employment Transition: The German Experience %D 2008 %8 2008 May %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 3483 %U https://www.iza.org/index.php/publications/dp3483 %X 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. %K benefit sanctions %K unemployment transitions %K German labor market reform %K ex-post evaluation %K propensity score matching %K hazard rate model %K unobserved heterogeneity