TY - RPRT AU - Müller, Kai-Uwe AU - Steiner, Viktor TI - Imposed Benefit Sanctions and the Unemployment-to-Employment Transition: The German Experience PY - 2008/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 3483 UR - https://www.iza.org/index.php/publications/dp3483 AB - 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. KW - benefit sanctions KW - unemployment transitions KW - German labor market reform KW - ex-post evaluation KW - propensity score matching KW - hazard rate model KW - unobserved heterogeneity ER -