Punitive Sanctions and the Transition Rate from Welfare to Work
Gerard J. van den Berg
Bas van der Klaauw
Jan C. van Ours
Journal of Labor Economics
22, 211-241 (2004).
In The Netherlands, the average exit rate out of welfare is dramatically low. Most welfare recipients have to
comply with guidelines on job search effort that are imposed by the welfare agency. If they do not, then a sanction in
the form of a temporary benefit reduction can be imposed. This paper investigates the effect of such sanctions on the
transition rate from welfare to work using a unique set of rich administrative data on welfare recipients. We find that
the imposition of sanctions substantially increases the individual transition rate from welfare to work.
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Last updated: March 12, 2004.