Similar to many other European countries, Germany's unemployment policy made a paradigm shift towards activation policy with a tightened monitoring and sanction regime. In our analysis, we examine the impact of benefit sanctions on the probability of getting employed or leaving the labor force....

Similar to numerous other European countries, Germany's unemployment policy went through a paradigm shift towards activation policy by tightening their monitoring and sanction regime. In our study we examine the impact of benefit sanctions on the probability of getting employed or leaving the...

In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market...